TechPrecision Corporation

Greetings, and welcome to the Tech Precision First Quarter 2025 Financial Results Conference Call. At this time, all participants are in a listen-only mode. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Mr. Brett Moss, Managing Director of Hayden IR. Thank you, sir. You may begin.

Thank you. On the call today is Alex Chen, Chief Executive Officer, and Richard Romberg, Chief Financial Officer. Before we begin, I'd like to remind our listeners that management's remarks may contain forward-looking statements, which are subject to risks and uncertainties. Therefore, the company claims the protection of the safe harbor for forward-looking statements as contained in the Private Securities Litigation Reform Act of 1995. Actual results may differ from those discussed today, and therefore, we refer you to a more detailed discussion of risks and uncertainties in the company's financial filings of the SEC. In addition, projections as to the company's future performance represents management's estimates as of June 30th, Form 10Q filing period. Tech Precision assumes no obligation to revise or update these forward-looking statements. With that out of the way, I'd like to turn the call over to Alex Shen, Chief Executive Officer, to provide open remarks. Alex, the floor is yours.

Thank you, Brett. Good afternoon to everyone, and thank you for joining us. Because the fiscal year 2025 second quarter financials have not been released, We continue to be in a quiet period wherein we are limited in our ability to speak about the company's finances. In addition, as there is a pending proxy contest, we are under restrictions as to what we can speak about. As such, we will not be taking questions at the end of this earnings call. Once the annual meeting has been held, we expect to return to our usual earnings call format. To be blunt, DATCO had a very poor fiscal year 2025 first quarter ending June 30, 2024, resulting in large part from the terminated VOTA precision manufacturing acquisition incurring an operating loss of $1.3 million, primarily due to serious equipment problems. This was a direct result of our reducing maintenance and CapEx at STATCO to bare minimums starting during August 2023 in anticipation of the acquisition of VOTA as we had planned on immediately integrating STATCO into the VOTA facility. Since the termination of that acquisition during April 2024, we have been playing catch up in this area. However, Our efforts were too late to prevent the equipment failures that resulted in dramatic increases to STATCO's costs of production during this period, in some cases nearly doubling the cost of production. Further affecting our loss was an accounting measure as we recognized an additional one-time non-cash $400,000 charge in fair market valuation of tech precision shares issued and recognized during April 2024 as the breakup fee from the termination of the Volta acquisition. There were no additional shares issued. That change in fair value fell directly to our bottom line for the first quarter of fiscal year 2025. At the same time, our Raynor subsidiary continued to perform well in fiscal year 2025 first quarter, as our newly joined CFO, Richard Ruhmberg, will speak to shortly. For the quarter, Raynor revenue of $4.4 million compared to revenue of $4.5 million a year ago. Fiscal year 2025 first quarter StatCo revenue was $3.6 million, or a 21% increase versus the same quarter a year ago. For fiscal year 2025 first quarter, consolidated revenue was $8 million or 8% higher when compared to revenue of $7.4 million for the same period a year ago. Gross profit shrank due to higher production costs and underabsorbed overhead when compared to the same period a year ago, again, a direct result of the non-performing equipment at STADCO. Now I'd like to turn the call over to our CFO, Richard Ruhmberg. Welcome aboard. Richard, please continue with the review of our first quarter results.