Item 1.01 Entry into a Material Definitive Agreement

On January 30, 2023, Stadco, a wholly-owned subsidiary of TechPrecision Corporation (the "Company"), entered into a payment arrangement agreement (the "Payment Agreement") with the Department of Water and Power of the City of Los Angeles ("LADWP"), in order to settle previously outstanding amounts for water, water service, electric energy and/or electric service in the aggregate amount of approximately $1,770,201 that are delinquent and unpaid. This liability amount was included in accounts payable on the Company's balance sheet as of September 30, 2022. Under the Payment Agreement, Stadco agrees to make monthly installment payments on the unpaid balance beginning on December 15, 2022 in an aggregate amount of approximately $18,439 per month until the earlier of November 15, 2030 or the amount due is paid in full. Late payments under the Payment Agreement accrue a late payment charge equal to an 18% annual rate on the unpaid balance.

In addition, failure to pay any future water and power bills when due and payable will constitute a breach of the Payment Agreement. In the event of a breach of the Payment Agreement, LADWP may cause the delinquent balance to be immediately due and payable in full. Furthermore, a breach of the Payment Agreement would permit LADWP to avail itself of existing collection techniques, including interruption of service and the right to interest at a rate of 18% annually on the unpaid overdue balance, including attorney's fees and court costs in connection with the enforcement of the Payment Agreement. The Payment Agreement allows Stadco to cure any default within 10 days of written notice of default. During such cure period, LADWP may not exercise the remedies described above.

Other than in respect of the Payment Agreement and the LADWP's provision of utility services to Stadco, there is no material relationship between Stadco, the Company and any other affiliate of the Company, on the one hand, and LADWP, on the other hand. The description of the Payment Agreement is qualified in its entirety by reference to the full text of the agreement, a copy of which is attached hereto as Exhibit 10.1 and is incorporated by reference herein.

Item 9.01 Financial Statements and Exhibits






(d)    Exhibits



Exhibit     Description
Number
  10.1#       Payment Agreement between Stadco and LADWP.
104         Cover Page Interactive Data File (the cover page XBRL tags are
            embedded within the inline XBRL document).

# Certain portions of this Exhibit were redacted pursuant to Item 601(a)(6) of Regulation S-K and marked by means of brackets and asterisks ("[****]").

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