Techprecision Corp (TPCS)

[Obi-Wan Kenobi]

TPCS Liquidity and Capital Resources
source: 10-Q on otcmarkets.com
http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=9613450

At September 30, 2013, we were in default and continue to be in default with the Loan and Security Agreement between Ranor and Sovereign Bank, or the Bank, dated February 24, 2006, as amended, or the Loan Agreement. At March 31, 2013, we were not in compliance with the fixed charges and interest coverage financial covenants under the Loan Agreement, and the Bank did not agree to waive our non-compliance with the covenants. As a result, we were in default at March 31, 2013. In addition, the Bank did not renew the revolving credit facility which expired on July 31, 2013. The Bank has the right to accelerate payment of the debt in full upon 60 days written notice. As a consequence, all amounts under the Loan Agreement are classified as a current liability at September 30, 2013 ($5.4 million) and March 31, 2013 ($5.8 million). The Bank continues to evaluate its course of action and has not yet demanded repayment. We continue to make payments pursuant to the terms of the Loan Agreement. If the Bank were to make such a demand for repayment, we would be unable to pay the obligation as we do not have existing facilities or sufficient cash on hand to satisfy these obligations and would need to seek alternative financing. The covenants under the loan agreement are no longer being tested on a monthly, quarterly or annual basis.

We have incurred net losses of $2.2 million for the first six months of the year ending March 31, 2014, or fiscal 2014, and $2.4 million and $2.1 million for the annual periods ended March 31, 2013 and 2012, respectively. At September 30, 2013 we had cash and cash equivalents of $1.5 million of which $0.1 million is located in China and which we may not be able to repatriate for use in the U.S. without undue cost or expense if at all. We borrowed $0.5 million under our revolving line of credit during the quarter ended March 31, 2013, and repaid this borrowing in full in July 2013. In addition, we have $0.9 million of restricted cash with the Bank (included in our other current assets) that could be used toward satisfying our obligation under the Loan Agreement.

These factors raise substantial doubt about our ability to continue as a going concern. In order for us to continue operations beyond the next twelve months and be able to discharge our liabilities and commitments in the normal course of business, we must secure long-term financing on terms consistent with our business plans. In addition, we must increase our backlog and change the composition of our revenues to focus on recurring unit of delivery projects rather than custom first article and prototyping projects which do not efficiently use our manufacturing capacity, and reduce our operating expenses to be in line with current business conditions in order to increase profit margins and decrease the amount of cash used in operations. If we are successful in changing the composition of revenue and reducing costs, we expect that fiscal 2014 operating results will reflect positive operating cash flows. However, we plan to closely monitor our expenses and, if required, will further reduce operating costs and capital spending to enhance liquidity.

The condensed consolidated financial statements for the three and six months ended September 30, 2013 and the year ended March 31, 2013, or fiscal 2013, were prepared on the basis of a going concern which contemplates that we will be able to realize assets and discharge liabilities in the normal course of business. Accordingly, they do not give effect to adjustments that would be necessary should we be required to liquidate assets. Our ability to satisfy our total current liabilities of $10.1 million at September 30, 2013 and to continue as a going concern is dependent upon the availability of and our ability to timely secure long-term financing and the successful execution of our operating plan. The financial statements do not include any adjustments that might result from the outcome of these uncertainties.

[The Night Stalker]

agreed, i used the weekly chart to spot this, the weekly PPO was the indicator and did further DD and I'm impressed. rare pink

[The Night Stalker]

i will read into that shortly

[J85]

Will enjoy reading the CC, especially forward looking statements and the return to profitability.

[The Night Stalker]

sold this am, i didn't want to but i did to buy into my monster penny stock call AMMX at 0066

bought back TPCS at 1.33 *much smaller position* and holding for a few weeks

the CC will give this rocket fuel

[The Night Stalker]

the CC in jan or feb will fuel this

[SmurfVA]

TPCS - Looks like she's setting up for $1.50 here...

[J85]

Noticed the article and it is giving some very nice action today indeed!

Good luck!

[SmurfVA]

HAHAHA Armani! Armani's play is the BEAST is more like it! Looks like Gomes did another hit piece! Ref. http://seekingalpha.com/article/1928581-Apples-Expanding-Ecosystem-Will-Help-These-Stocks-Triple?source=yahoo

[J85]

Waiting on a dip to buy in as I missed the morningdip last week.

This is a promising company, looking forward to the end of the year or(speculating) more GTAT orders for Sapphire screens.

[The Night Stalker]

yup armanis plays are crap

[The Night Stalker]

1.27

[The Night Stalker]

1.25 is key break

[The Night Stalker]

top notch 60 min chart, macd will only look better from here on out

http://stockcharts.com/c-sc/sc?s=TPCS&p=60&yr=0&mn=0&dy=20&i=p40316848078&a=329635588&r=1388429627406

[The Night Stalker]

next leg starts next week, it was going to be a 3-4 week hold

but a micro penny stock with 6 bags potential came into play, so I'm buying that. hope its the one. build my account mighty and strong and I'm a big buyer of CTIX for mid feb and I'm using margin

[The Night Stalker]

hoping the volume picks up like it did last hour. this trades strong on low volume as well. solid play, some news would ignite it

[SmurfVA]

You too Armani enjoy your weekend! We'll catch up next week!

[The Night Stalker]

have a great weekend.

looking for a big one to buy in next

[SmurfVA]

Looking sexy! Well let's see if she can climb/ hold her head up high and position for a run...1-2 weeks.

[The Night Stalker]

she's a beauty in the 60 min chart.

http://stockcharts.com/c-sc/sc?s=TPCS&p=60&yr=0&mn=0&dy=20&i=p40316848078&a=329635588&r=1388429627406

[The Night Stalker]

good buy, next leg is coming

[Cuppy]

I'm in for 2500 shares

[The Night Stalker]

huge buys coming in now

next few weeks we see serious gains here

[The Night Stalker]

top notch 60 min chart, this is set to go from here on out

http://stockcharts.com/c-sc/sc?s=TPCS&p=60&yr=0&mn=0&dy=20&i=p40316848078&a=329635588&r=1388429627406

[The Night Stalker]

big buys coming in

[J85]

Alright, don't know where that came from, but completely uncalled for and you're ruining the atmosphere at this board with that post.

"you suck" "poser" "wanna be trader" , really ??

Does this have anything to do, that I mentioned I have funds available now and looking to add to my position ?
Especially since I'm an investor and not a trader, please don't jump to your own conclusions prematurely.

[The Night Stalker]

good, don't buy you suck anyways. you poser wanna be trader

[The Night Stalker]

http://stockcharts.com/c-sc/sc?s=TPCS&p=60&yr=0&mn=0&dy=20&i=p40316848078&a=329635588&r=1388429627406

macd went green, next leg bound

[J85]

Haha, good call unless you're the one buying Armani :)

Now I have funds, but won't buy as of yet anymore.

[The Night Stalker]

been a wild ride, but its set to go from here

[SmurfVA]

Looks like it's running up soon here Armani!

[The Night Stalker]

1.22 i think yes, maybe even more than 1.25

next 2 weeks this will run nicely

[J85]

Don't think so, but I hope so

[The Night Stalker]

very thin stock, buys coming in now

all my plays are gay at first lately, then run hard.

we see some green today, the 60 min MACD will turn up for next week

[The Night Stalker]

we test 1.25 today

[The Night Stalker]

some buys coming in, this can go green today

[The Night Stalker]

some buying vlume and this goes green

[The Night Stalker]

trades well even on low volume, next 2- 3 weeks this is a winner

[The Night Stalker]

some buying and we go green imo that prepares the 60 min, once that macd goes green the next leg begins.

[The Night Stalker]

holding all as my plays at times take a few weeks

[The Night Stalker]

hardly any buying today

[The Night Stalker]

watch it go green big weirdo

[The Night Stalker]

dropped on low volume, it did this yesterday then it went green. its a wild stock

[The Night Stalker]

gee this one just can't seem to run

[The Night Stalker]

http://stockcharts.com/c-sc/sc?s=TPCS&p=60&yr=0&mn=0&dy=20&i=p40316848078&a=329635588&r=1388429627406

[The Night Stalker]

MACD is about to go green in the 60 min chart up from here, good company here, surely there is more great news next few weeks

[The Night Stalker]

RSI is trending in the power zone

[northcutt2]

I see since the 23rd volume is massive. The gap & RSI has me a little concerned although there is support at 1.10 its looking. So given everything else, the concern for that gap is small?

[The Night Stalker]

its so ready here imo, good company

[The Night Stalker]

hoping to see some green tomorrows the 60 min chart macd will turn up, consolidation is about done, next leg is coming. holding possibly for 2-3 weeks

really have a great penny stock after this bad boy.

and a bio mid feb play