TechPrecision Corporation reported its financial results for the three months ended June 30, 2024, showing a consolidated revenue of $7.99 million, an increase of 8% from $7.37 million in the same period of 2023. The revenue growth was driven by a 21% increase in Stadco's revenue, which reached $3.6 million, while Ranor's revenue slightly decreased by 3% to $4.4 million. Despite the revenue increase, the company experienced a significant decline in profitability, with a gross profit of $238,673, down 66% from $694,149 in the prior year, resulting in a gross margin of 3.0%, compared to 9.4% in the same period last year.
The operating loss for the quarter was $1.34 million, a substantial increase from a loss of $579,800 in the same quarter of 2023. This increase was primarily attributed to losses at Stadco and a $0.4 million change in fair value related to a breakup fee from the terminated acquisition of Votaw Precision Technologies, Inc. The net loss for the quarter was $1.46 million, or $0.16 per share, compared to a net loss of $527,455, or $0.06 per share, in the previous year.
Total current assets as of June 30, 2024, were $16.51 million, up from $14.85 million at the end of March 2024, while total assets increased to $35.74 million from $34.75 million. However, total current liabilities also rose to $18.17 million from $17.75 million, leading to a negative working capital of $(1.66 million), although this was an improvement from $(2.90 million) at the end of March 2024.
The company faced challenges with its debt obligations, totaling $7.49 million as of June 30, 2024, classified as current due to covenant violations. The company is exploring options to strengthen its liquidity, including making Stadco operations profitable and renewing its revolver loan, which has been extended to January 15, 2025. The company also raised approximately $2.3 million through a private placement of common stock and warrants in July 2024.
In terms of operational developments, TechPrecision's management is addressing material weaknesses in internal controls over financial reporting, particularly related to the Stadco acquisition. A remediation plan has been initiated, focusing on enhancing controls and staffing. The company is committed to ongoing improvements in its internal control processes.
About TECHPRECISION CORP
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