v3.26.1
INCOME TAXES
 12 Months Ended
Mar. 31, 2026
INCOME TAXES  
INCOME TAXES

NOTE 5 – INCOME TAXES

We account for income taxes under ASC 740, Income Taxes. The following table reflects loss from continuing operations by location, and the provision for income taxes for the applicable fiscal years ended:

​

​

​

​

​

​

​

​

​

  ​ ​ ​

March 31, 2026

  ​ ​ ​

March 31, 2025

Loss before income taxes

​

$

(1,633)

​

$

(2,750)

Income tax expense (benefit)

​

 

31

​

 

(2)

Net loss

​

$

(1,664)

​

$

(2,748)

​

​

​

​

​

​

​

​

The Components of the income tax provision consist of the following for the fiscal years ended:

  ​ ​ ​

March 31, 2026

  ​ ​ ​

March 31, 2025

Current:

 

​

  ​

 

​

  ​

Federal

​

$

—

​

$

(1)

State

​

 

31

​

 

(1)

Foreign

​

​

—

​

​

—

Total Current

​

$

31

​

$

(2)

Deferred:

​

 

​

​

 

​

Federal

​

$

—

​

$

—

State

​

 

—

​

 

—

Foreign

​

​

—

​

​

—

Total Deferred

​

$

—

​

$

—

Total:

​

​

​

​

​

​

Federal

​

​

—

​

​

(1)

State

​

​

31

​

​

(1)

Foreign

​

​

—

​

​

—

Total expense (benefit)

​

$

31

​

$

(2)

​

Our fiscal 2026 and 2025 taxes were measured at the U.S. statutory income tax rate of 21%. The effective tax rate is calculated by dividing the income tax provision by loss before income taxes. The following table reconciles income taxes computed at the U.S. federal statutory rate to the actual tax expense for income taxes reported in the Consolidated Statements of Operations follows for fiscal year ended:

​

​

​

​

​

​

​

​

​

​

  ​ ​ ​

March 31, 2026

 

U.S. statutory income tax

​

$

(343)

  ​ ​ ​

​

21.0

%

State income tax, net of federal benefits

​

 

27

​

 

(1.7)

%

Changes in the valuation allowance

​

​

415

​

​

(25.4)

%

Stock compensation

​

 

(48)

​

 

2.9

%

Other nondeductible items

​

 

12

​

 

(0.7)

%

Adjustment to prior year deferred balance

​

​

(32)

​

​

2.0

%

Income tax expense and effective income tax rate*

​

$

31

​

​

(1.9)

%

*

For the fiscal year ended March 31, 2026, state and local income taxes in California comprised the majority of state and local income tax expense, net of federal effects.

The next table reconciles income taxes computed at the U.S. federal statutory rate to actual tax expense, prior to the adoption of ASU 2023-09 for the fiscal year ended:

​

​

​

​

​

​

​

  ​ ​ ​

March 31, 2025

 

U.S. statutory income tax

​

$

(577)

​

State income tax, net of federal benefit

​

 

159

​

Change in valuation allowance

​

 

410

​

Other

​

 

6

​

Income tax benefit

​

$

(2)

​

Effective tax rate

​

 

0.07

%

​

​

​

​

​

​

​

​

Components of deferred income tax assets and liabilities on:

  ​ ​ ​

March 31, 2026

  ​ ​ ​

March 31, 2025

Deferred tax assets:

 

​

  ​

 

​

  ​

Net operating loss carryforward

​

$

5,390

​

$

6,056

Compensation

​

 

226

​

 

221

Stock based compensation awards

​

​

107

​

​

25

Operating leases

​

​

838

​

​

995

Other items not currently deductible

​

 

490

​

 

170

Total deferred tax assets

​

 

7,051

​

 

7,467

Valuation allowance

​

​

(6,200)

​

​

(5,722)

Net deferred tax assets

​

 

851

​

 

1,745

Deferred tax liabilities:

​

​

​

​

​

​

Depreciation

​

​

(39)

​

​

(782)

Operating leases

​

​

(812)

​

​

(963)

Total deferred tax liabilities

​

 

(851)

​

 

(1,745)

Deferred taxes, net

​

$

—

​

$

—

​

In assessing the recoverability of deferred tax assets, we consider whether it is more likely than not that some portion or all the deferred tax assets will not be realized. We have determined that it is more likely than not that certain future tax benefits may not be realized. The assessment was based on the weight of negative evidence at the balance sheet date, our recent operating losses and unsettled circumstances that, if unfavorably resolved, would adversely affect future operations and profit levels. Accordingly, a valuation allowance has been recorded against deferred tax assets that are unlikely to be realized. Realization of deferred tax assets will depend on the generation of sufficient taxable income in the appropriate jurisdictions, the reversal of deferred tax liabilities, tax planning strategies and other factors prior to the expiration date of the carryforwards. A change in the estimates used to make this determination could require an increase or a reduction in the valuation allowance currently recorded against those deferred tax assets. The valuation allowance on deferred tax assets at March 31, 2026 and 2025 was $6,200 and $5,722, respectively. We believe that it is more likely than not that the benefit from certain NOL carryforwards and other deferred tax assets will not be realized.

As of March 31, 2026 we had federal net operating losses of $17,723 which begin to expire in 2034. The Internal Revenue Code provides for a limitation on the annual use of net operating loss carryforwards following certain ownership changes that could limit our ability to utilize these carryforwards on a yearly basis. Also, U.S. tax laws may limit the time during which these loss carryforwards may be applied against future taxes. As such, certain pre-2021 Stadco net operating loss carryforwards available for TechPrecision’s consolidated tax group may be limited, including $9,127 of the total Stadco NOL carryforward available.

We have not accrued any penalties with respect to uncertain tax positions. We file income tax returns in the U.S. federal jurisdiction and various U.S. state jurisdictions. Tax years 2022 and forward remain open for examination.

​

​

​

​

​

Income taxes paid, net of refunds

  ​ ​ ​

March 31, 2026

Federal

​

$

—

States:

​

​

​

California

​

​

4

Other

​

​

—

Total State

​

$

4

Foreign

​

 

—

Total income taxes paid, net of refunds

​

$

4

​