Form 10-Q - Quarterly report [Sections 13 or 15(d)]

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒	Quarterly Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended September 30, 2023

☐	Transition Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from _____ to _____.

Commission File Number: 0-19672

American Superconductor Corporation

(Exact name of registrant as specified in its charter)

Delaware	04-2959321
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

114 East Main St. Ayer, Massachusetts	01432
(Address of principal executive offices)	(Zip Code)

(978) 842-3000

(Registrant’s telephone number, including area code)

N/A

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.01 par value per share	AMSC	Nasdaq Global Select Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☐	Accelerated filer ☒
Non-accelerated filer ☐	Smaller reporting company ☒
	Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Shares outstanding of the Registrant’s common stock:

Common Stock, par value $0.01 per share		30,318,511
Class		Outstanding as of October 27, 2023

AMERICAN SUPERCONDUCTOR CORPORATION

INDEX

		Page No.
PART I—FINANCIAL INFORMATION

Item 1.	Financial Statements	3

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	27

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	35

Item 4.	Controls and Procedures	35

PART II—OTHER INFORMATION

Item 1.	Legal Proceedings	36

Item 1A.	Risk Factors	36

Item 2.	Unregistered Sales of Equity Securities, Use of Proceeds and Issuer Purchases of Equity Securities	36

Item 3.	Defaults Upon Senior Securities	36

Item 4.	Mine Safety Disclosure	36

Item 5.	Other Information	36

Item 6.	Exhibits	37

Signature		38

AMERICAN SUPERCONDUCTOR CORPORATION

PART I — FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

	*September 30, 2023*			*March 31, 2023*
ASSETS
Current assets:
Cash and cash equivalents	$	22,818		$	23,360
Accounts receivable, net		27,509			30,665
Inventory, net		47,835			36,986
Prepaid expenses and other current assets		5,398			13,429
Restricted cash		546			1,733
Total current assets		104,106			106,173

Property, plant and equipment, net		11,583			12,309
Intangibles, net		7,445			8,527
Right-of-use assets		2,493			2,857
Goodwill		43,471			43,471
Restricted cash		616			582
Deferred tax assets		1,083			1,114
Other assets		530			528
Total assets	$	171,327		$	175,561

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
Accounts payable and accrued expenses	$	28,949		$	38,383
Lease liability, current portion		696			808
Debt, current portion		57			75
Contingent consideration		3,470			1,270
Deferred revenue, current portion		52,093			43,572
Total current liabilities	$	85,265			84,108

Deferred revenue, long-term portion		6,953			7,188
Lease liability, long-term portion		1,929			2,184
Deferred tax liabilities		261			243
Debt, long-term portion		-			15
Other liabilities		25			26
Total liabilities		94,433			93,764

Commitments and Contingencies (Note 16)

Stockholders' equity:
Common stock		307			299
Additional paid-in capital		1,142,023			1,139,113
Treasury stock		(3,639	)		(3,639	)
Accumulated other comprehensive income		1,633			1,571
Accumulated deficit		(1,063,430	)		(1,055,547	)
Total stockholders' equity		76,894			81,797
Total liabilities and stockholders' equity	$	171,327		$	175,561

The accompanying notes are an integral part of the unaudited condensed consolidated financial statements

AMERICAN SUPERCONDUCTOR CORPORATION

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data)

	*Three Months Ended*						*Six Months Ended*
	*September 30,*						*September 30,*
	*2023*			*2022*			*2023*			*2022*
Revenues	$	34,004		$	27,680		$	64,258		$	50,360

Cost of revenues		25,418			25,710			49,390			46,169

Gross margin		8,586			1,970			14,868			4,191

Operating expenses:
Research and development		1,641			2,314			3,493			4,992
Selling, general and administrative		7,946			7,350			15,815			14,911
Amortization of acquisition-related intangibles		538			688			1,076			1,369
Change in fair value of contingent consideration		850			(290	)		2,200			(120	)
Restructuring		(20	)		-			(14	)		-
Total operating expenses		10,955			10,062			22,570			21,152

Operating loss		(2,369	)		(8,092	)		(7,702	)		(16,961	)

Interest income, net		194			45			368			70
China dissolution		-			(1,921	)		-			(1,921	)
Other income (expense), net		(204	)		73			(321	)		240
Loss before income tax expense (benefit)		(2,379	)		(9,895	)		(7,655	)		(18,572	)

Income tax expense (benefit)		106			(14	)		228			18

Net loss	$	(2,485	)	$	(9,881	)	$	(7,883	)	$	(18,590	)

Net loss per common share
Basic	$	(0.09	)	$	(0.35	)	$	(0.28	)	$	(0.67	)
Diluted	$	(0.09	)	$	(0.35	)	$	(0.28	)	$	(0.67	)

Weighted average number of common shares outstanding
Basic		28,828			27,867			28,545			27,714
Diluted		28,828			27,867			28,545			27,714

The accompanying notes are an integral part of the unaudited condensed consolidated financial statements.

AMERICAN SUPERCONDUCTOR CORPORATION

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

(In thousands)

	*Three Months Ended*						*Six Months Ended*
	*September 30,*						*September 30,*
	*2023*			*2022*			*2023*			*2022*
Net loss	$	(2,485	)	$	(9,881	)	$	(7,883	)	$	(18,590	)
Other comprehensive (loss) gain, net of tax:
China dissolution		-			1,921			-			1,921
Foreign currency translation gain		64			105			62			168
Total other comprehensive gain, net of tax		64			2,026			62			2,089
Comprehensive loss	$	(2,421	)	$	(7,855	)	$	(7,821	)	$	(16,501	)

The accompanying notes are an integral part of the unaudited condensed consolidated financial statements.

AMERICAN SUPERCONDUCTOR CORPORATION

UNAUDITED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

FOR THE Three and Six Months Ended September 30, 2023 AND 2022

(In thousands)

	*Common Stock*				*Additional*						*Accumulated Other*						*Total*
	*Number of Shares*		*Par Value*		*Paid-in Capital*			*Treasury Stock*			*Comprehensive Income*			*Accumulated Deficit*			*Stockholders' Equity*
Balance at March 31, 2023		29,937	$	299	$	1,139,113		$	(3,639	)	$	1,571		$	(1,055,547	)	$	81,797
Issuance of common stock - restricted shares		699		7		(7	)		—			—			—			—
Stock-based compensation expense		—		—		1,357			—			—			—			1,357
Issuance of stock for 401(k) match		33		1		163			—			—			—			164
Cumulative translation adjustment		—		—		—			—			(2	)		—			(2	)
Net loss		—		—		—			—			—			(5,398	)		(5,398	)
Balance at June 30, 2023		30,669	$	307	$	1,140,626		$	(3,639	)	$	1,569		$	(1,060,945	)	$	77,918
Issuance of common stock - ESPP		21		—		136			—			—			—			136
Issuance of common stock - restricted shares		9		—		—			—			—			—			—
Stock-based compensation expense		—		—		1,111			—			—			—			1,111
Issuance of stock for 401(k) match		17		—		150			—			—			—			150
Cumulative translation adjustment		—		—		—			—			64			—			64
Net loss		—		—		—			—			—			(2,485	)		(2,485	)
Balance at September 30, 2023		30,716	$	307	$	1,142,023		$	(3,639	)	$	1,633		$	(1,063,430	)	$	76,894

	*Common Stock*					*Additional*						*Accumulated Other*						*Total*
	*Number of Shares*			*Par Value*		*Paid-in Capital*			*Treasury Stock*			*Comprehensive Loss*			*Accumulated Deficit*			*Stockholders' Equity*
Balance at March 31, 2022		28,920		$	289	$	1,133,536		$	(3,639	)	$	(291	)	$	(1,020,506	)	$	109,389
Issuance of common stock - restricted shares, net of forfeited shares		(9	)		—		—			—			—			—			—
Stock-based compensation expense		—			—		1,033			—			—			—			1,033
Issuance of stock for 401(k) match		28			—		138			—			—			—			138
Cumulative translation adjustment		—			—		—			—			63			—			63
Net loss		—			—		—			—			—			(8,710	)		(8,710	)
Balance at June 30, 2022		28,939		$	289	$	1,134,707		$	(3,639	)	$	(228	)	$	(1,029,216	)	$	101,913
Issuance of common stock - ESPP		34			—		127			—			—			—			127
Issuance of common stock - restricted shares		331			3		(3	)		—			—			—			—
Stock-based compensation expense		—			—		1,019			—			—			—			1,019
Issuance of stock for 401(k) match		33			1		178			—			—			—			179
Cumulative translation adjustment		—			—		—			—			2,026			—			2,026
Net loss		—			—		—			—			—			(9,881	)		(9,881	)
Balance at September 30, 2022		29,337		$	293	$	1,136,028		$	(3,639	)	$	1,798		$	(1,039,097	)	$	95,383

The accompanying notes are an integral part of the unaudited condensed consolidated financial statements.

AMERICAN SUPERCONDUCTOR CORPORATION

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

	*Six Months Ended September 30,*
	*2023*			*2022*
Cash flows from operating activities:
Net loss	$	(7,883	)	$	(18,590	)
Adjustments to reconcile net loss to net cash used in operations:
Depreciation and amortization		2,234			2,799
Stock-based compensation expense		2,468			2,052
Provision for excess and obsolete inventory		1,070			1,015
Deferred income taxes		-			63
Change in fair value of contingent consideration		2,200			(120	)
China dissolution		-			1,921
Other non-cash items		273			(137	)
Changes in operating asset and liability accounts:
Accounts receivable		3,152			(92	)
Inventory		(11,935	)		(13,749	)
Prepaid expenses and other assets		8,378			211
Accounts payable and accrued expenses		(9,763	)		6,885
Deferred revenue		8,458			6,170
Net cash used in operating activities		(1,348	)		(11,572	)

Cash flows from investing activities:
Purchase of property, plant and equipment		(430	)		(560	)
Change in other assets		(10	)		(99	)
Net cash used in investing activities		(440	)		(659	)

Cash flows from financing activities:
Repayment of debt		(33	)		(33	)
Proceeds from exercise of employee stock options and ESPP		136			128
Net cash provided by financing activities		103			95

Effect of exchange rate changes on cash		(10	)		4

Net decrease in cash, cash equivalents and restricted cash		(1,695	)		(12,132	)
Cash, cash equivalents and restricted cash at beginning of period		25,675			49,486
Cash, cash equivalents and restricted cash at end of period	$	23,980		$	37,354

Supplemental schedule of cash flow information:
Cash paid for income taxes, net of refunds	$	171		$	152
Non-cash investing and financing activities
Issuance of common stock to settle liabilities	$	313		$	317

The accompanying notes are an integral part of the unaudited condensed consolidated financial statements.

AMERICAN SUPERCONDUCTOR CORPORATION

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

1. Nature of the Business and Operations and Liquidity

Nature of the Business and Operations

American Superconductor Corporation (together with its subsidiaries, “AMSC®” or the “Company”) was founded on April 9, 1987. The Company is a leading system provider of megawatt-scale power resiliency solutions that orchestrate the rhythm and harmony of power on the grid™ and that protect and expand the capability of the Navy’s fleet. The Company’s system level products leverage its proprietary “smart materials” and “smart software and controls” to provide enhanced resiliency and improved performance of megawatt-scale power flow.

These unaudited condensed consolidated financial statements of the Company have been prepared on a going concern basis in accordance with United States generally accepted accounting principles (“GAAP”) and the Securities and Exchange Commission’s (“SEC”) instructions to Form 10-Q. The going concern basis of presentation assumes that the Company will continue operations and will be able to realize its assets and discharge its liabilities and commitments in the normal course of business. Certain information and footnote disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to those instructions. The year-end condensed balance sheet data was derived from audited financial statements but does not include all disclosures required by GAAP. The unaudited condensed consolidated financial statements, in the opinion of management, reflect all adjustments (consisting of normal recurring adjustments) necessary for a fair statement of the results for the interim periods ended September 30, 2023 and 2022 and the financial position at September 30, 2023; however, these results are not necessarily indicative of results which may be expected for the full year. The interim condensed consolidated financial statements, and notes thereto, should be read in conjunction with the audited consolidated financial statements for the year ended March 31, 2023, and notes thereto, included in the Company’s Annual Report on Form 10-K for the year ended March 31, 2023 filed with the SEC on May 31, 2023.

Liquidity

The Company has historically experienced recurring operating losses and as of September 30, 2023, the Company had an accumulated deficit of $1,063.4 million. In addition, the Company has historically experienced recurring negative operating cash flows. At September 30, 2023, the Company had cash and cash equivalents of $22.8 million. Cash used in operations for the six months ended September 30, 2023 was $1.3 million.

In February 2021, the Company filed a shelf registration statement on Form S-3 that will expire in February 2024 (the “Form S-3”). The Form S-3 allows the Company to offer and sell from time-to-time up to $250 million of common stock, debt securities, warrants or units comprised of any combination of these securities. The Form S-3 is intended to provide the Company flexibility to conduct registered sales of the Company's securities, subject to market conditions, in order to fund the Company's future capital needs. The terms of any future offering under the Form S-3 will be established at the time of such offering and will be described in a prospectus supplement filed with the SEC prior to the completion of any such offering.

The Company continues to experience inflationary pressure in its supply chain and some delays in sourcing materials needed for its products resulting in some production disruption, both of which have increased the Company’s cost of revenues and decreased gross margin. While the impact of inflation has been challenging, the Company continues to take actions to limit this pressure, including adjusting the pricing of its products and services. Changes in macroeconomic conditions arising from the COVID-19 pandemic or for other reasons, such as the ongoing wars between Russia and Ukraine and Israel and Hamas, inflation, rising interest rates, labor force availability, sourcing, material delays and global supply chain disruptions could have a material adverse effect on the Company’s business, financial condition and results of operation.

From time-to-time the Company may undertake restructuring activities in order to align the global organization in a manner that the Company believes will better position it to achieve its long-term goals. In January 2023, the Company undertook a reduction in force that involved approximately 5% of the global workforce. This restructuring is expected to incur $1.0 million of cash expenses, $0.8 million of which has been paid as of September 30, 2023, and to result in annualized cost savings of approximately $5.0 million, beginning in fiscal 2023.

The Company believes that based on the information presented above and its quarterly management assessment, it has sufficient liquidity to fund its operations and capital expenditures for the next twelve months following the issuance of the unaudited condensed consolidated financial statements for the six months ended September 30, 2023. The Company’s liquidity is highly dependent on its ability to increase revenues, its ability to control its operating costs, and its ability to raise additional capital, if necessary. The impact of the COVID-19 pandemic and other sources of instability, including the wars between Russia and Ukraine and Israel and Hamas, on the global financing markets may reduce the Company's ability to raise additional capital, if necessary, which could negatively impact the Company's liquidity. There can be no assurance that the Company will be able to continue to raise additional capital, on favorable terms or at all, from other sources or execute on any other means of improving liquidity described above.

2. Revenue Recognition

The Company’s revenues in its Grid business segment are derived primarily through enabling the transmission and distribution of power, providing planning services that allow it to identify power grid needs and risks, and developing ship protection systems for the U.S. Navy. The Company’s revenues in its Wind business segment are derived primarily through supplying advanced power electronics and control systems, licensing its highly engineered wind turbine designs, and providing extensive customer support services to wind turbine manufacturers. The Company records revenue based on a five-step model in accordance with Accounting Standards Codification ("ASC") 606. For its customer contracts, the Company identifies the performance obligations, determines the transaction price, allocates the contract transaction price to the performance obligations, and recognizes the revenue when (or as) control of goods or services is transferred to the customer. In the three and six months ended September 30, 2023, 79% and 78% of revenue, respectively, was recognized at the point in time when control transferred to the customer, with the remainder being recognized over time. In the three and six months ended September 30, 2022, 83% and 77% of revenue, respectively, was recognized at the point in time when control transferred to the customer, with the remainder being recognized over time.

In the Company's equipment and system product line, each contract with a customer summarizes each product sold to a customer, which typically represents distinct performance obligations. A contract's transaction price is allocated to each distinct performance obligation using the respective standalone selling price which is determined primarily using the cost-plus expected margin approach and recognized as revenue when, or as, the performance obligation is satisfied. The majority of the Company’s product sales transfer control to the customer in line with the contracted delivery terms and revenue is recorded at the point in time when title and risk transfer to the customer, which is primarily upon delivery, as the Company has determined that this is the point in time that control transfers to the customer.

In the Company's service and technology development product line, there are several different types of transactions, and each begins with a contract with a customer that summarizes each product sold to a customer, which typically represents distinct performance obligations. The technology development transactions are primarily for activities that have no alternative use and for which a profit can be expected throughout the life of the contract. In these cases, the revenue is recognized over time, but in the instances where the profit cannot be assured throughout the entire contract then the revenue is recognized at a point in time. Each contract's transaction price is allocated to each distinct performance obligation using the respective standalone selling price which is determined primarily using the cost-plus expected margin approach. The ongoing service transactions are for service contracts that provide benefit to the customer simultaneously as the Company performs its obligations, and therefore this revenue is recognized ratably over time throughout the effective period of these contracts. The transaction prices on these contracts are allocated based on an adjusted market approach which is re-assessed annually for reasonableness. The field service transactions include contracts for delivery of goods and completion of services made at the customer's requests, which are not deemed satisfied until the work has been completed and/or the requested goods have been delivered, so all of this revenue is recognized at the point in time when the control changes, and at allocated prices based on the adjusted market approach driven by standard price lists. The royalty transactions are related to certain contract terms on transactions in the Company's equipment and systems product line based on activity as specified in the contracts. The transaction prices of these agreements are calculated based on an adjusted market approach as specified in the contract. The Company reports royalty revenue for usage-based royalties when the sales have occurred. In circumstances when collectability is not assured and a contract does not exist under ASC 606, revenue is deferred until a non-refundable payment has been received for substantially all the amount that is due and there are no further remaining performance obligations.

The Company's service contracts can include a purchase order from a customer for specific goods in which each item is a distinct performance obligation satisfied at a point in time at which control of the goods is transferred to the customer. This transfer occurs based on the contracted delivery terms or when the requested service work has been completed. The transaction price for these goods is allocated based on the adjusted market approach considering similar transactions under similar circumstances. Service contracts are also derived from ongoing maintenance contracts and extended service-type warranty contracts. In these transactions, the Company is contracted to provide an ongoing service over a specified period of time. As the customer is consuming the benefits as the service is being provided, the revenue is recognized over time ratably.

The Company’s policy is not to accept volume discounts, product returns, or rebates and allowances within its contracts. In the event a contract was approved with any of these terms, it would be evaluated for variable consideration, estimated and recorded as a reduction of revenue in the same period the related product revenue was recorded.

The Company provides assurance-type warranties on all product sales for a term of typically one to three years, and extended service-type warranties are available for purchase at the customer's option for an additional term ranging up to four additional years. The Company accrues for the estimated warranty costs for assurance warranties at the time of sale based on historical warranty experience plus any known or expected changes in warranty exposure. For all extended service-type warranties, the Company recognizes the revenue ratably over time during the effective period of the services.

The Company records revenue net of sales tax, value added tax, excise tax and other taxes collected concurrent with revenue-producing activities. The Company has elected to recognize the cost for freight and shipping when control over the products sold passes to customers and revenue is recognized. The Company has elected to recognize incremental costs of obtaining a contract as expense when incurred except in contracts where the amortization period would exceed twelve months; in such cases the long-term amount will be assessed for materiality. The Company has elected not to adjust the promised amount of consideration for the effects of a significant financing component if the period of financing is twelve months or less. The Company has elected to recognize revenue based on the As Invoiced practical expedient if there is a right to consideration from a customer in an amount that corresponds directly with the value of the Company's performance.

The Company monitors costs to meet its obligations on its customer contracts. When it is evident that there is a loss expected on a contract, a contract loss is accrued in the period. Several long-term contracts that were acquired from Neeltran, Inc. (“Neeltran”) were impacted by higher than planned costs due to required design changes and inflation on material costs, resulting in an increase to the contract loss accrual of $1.0 million and $1.2 million in the three and six months ended September 30, 2022, respectively, which negatively impacted the Company's gross margins. The contract loss accrual decreased by $0.9 million in each of the three and six months ended September 30, 2023, respectively, as projects have been completed.

The Company’s contracts with customers do not typically include extended payment terms and may include milestone billing over the life of the contract. Payment terms vary by contract type and type of customer and generally range from 30 to 60 days from delivery.

The following tables disaggregate the Company’s revenue by product line and by shipment destination (in thousands):

	*Three Months Ended September 30, 2023*				*Six Months Ended September 30, 2023*
Product Line:	*Grid*		*Wind*		*Grid*		*Wind*
Equipment and systems	$	22,682	$	4,879	$	45,808	$	8,862
Services and technology development		5,833		610		8,443		1,145
Total	$	28,515	$	5,489	$	54,251	$	10,007

Region:
Americas	$	24,696	$	27	$	47,856	$	57
Asia Pacific		3,418		5,462		5,129		9,928
EMEA		401		—		1,266		22
Total	$	28,515	$	5,489	$	54,251	$	10,007

	*Three Months Ended September 30, 2022*				*Six Months Ended September 30, 2022*
Product Line:	*Grid*		*Wind*		*Grid*		*Wind*
Equipment and systems	$	24,128	$	1,330	$	42,204	$	3,302
Services and technology development		1,570		652		3,323		1,531
Total	$	25,698	$	1,982	$	45,527	$	4,833

Region:
Americas	$	18,021	$	-	$	34,923	$	-
Asia Pacific		6,178		1,912		8,855		4,763
EMEA		1,499		70		1,749		70
Total	$	25,698	$	1,982	$	45,527	$	4,833

As of September 30, 2023, and 2022, the Company’s contract assets and liabilities primarily relate to the timing differences between cash received from a customer in connection with contractual rights to invoicing and the timing of revenue recognition following completion of performance obligations. The Company's accounts receivable balance is made up entirely of customer contract related balances. Changes in the Company’s contract assets, which are included in “Unbilled accounts receivable” and “Deferred program costs” (see Note 7, “Accounts Receivable” and Note 8, “Inventory” for a reconciliation to the condensed consolidated balance sheets) and "Contract liabilities", which are included in the current portion and long-term portion of "Deferred revenue" in the Company’s condensed consolidated balance sheets, are as follows (in thousands):

	*Unbilled Accounts Receivable*			*Deferred Program Costs*			*Contract Liabilities*
Beginning balance as of March 31, 2023	$	9,958		$	2,136		$	50,760
Increases for costs incurred to fulfill performance obligations		—			2,110			—
Increase (decrease) due to customer billings		(13,981	)		—			34,284
Decrease due to cost recognition on completed performance obligations		—			(2,160	)		—
Increase (decrease) due to recognition of revenue based on transfer of control of performance obligations		10,351			—			(25,710	)
Other changes and FX impact		7			(11	)		(288	)
Ending balance as of September 30, 2023	$	6,335		$	2,075		$	59,046

	*Unbilled Accounts Receivable*			*Deferred Program Costs*			*Contract Liabilities*
Beginning balance as of March 31, 2022	$	6,492		$	858		$	30,034
Increases for costs incurred to fulfill performance obligations		—			782			—
Increase (decrease) due to customer billings		(7,322	)		—			33,141
Decrease due to cost recognition on completed performance obligations		—			(697	)		—
Increase (decrease) due to recognition of revenue based on transfer of control of performance obligations		7,342			—			(26,857	)
Other changes and FX impact		—			(47	)		(863	)
Ending balance as of September 30, 2022	$	6,512		$	896		$	35,455

The Company’s remaining performance obligations represent the unrecognized revenue value of the Company’s contractual commitments. The Company’s performance obligations may vary significantly each reporting period based on the timing of major new contractual commitments. As of September 30, 2023, the Company had outstanding performance obligations on existing contracts under ASC 606 to be recognized in the next twelve months of approximately $128.3 million. There are also approximately $43.2 million of outstanding performance obligations to be recognized over a period of thirteen to sixty months. The remaining performance obligations are subject to customer actions and therefore the timing of revenue recognition cannot be reasonably estimated.

The following table sets forth customers who represented 10% or more of the Company’s total revenues for the three and six months ended September 30, 2023 and 2022:

Three Months Ended

Six Months Ended

Reportable

September 30,

Segment

2023

2022

2023

2022

Inox Wind Limited

Wind

<10%

Fuji Bridex Pte Ltd

Grid

<10%

Gray Construction, Inc.

Grid

<10%

Ascend Performance Materials Ops LLC

Grid

<10%

3. Stock-Based Compensation

The Company accounts for its stock-based compensation at fair value. The following table summarizes stock-based compensation expense by financial statement line item for the three and six months ended September 30, 2023 and 2022 (in thousands):

	*Three Months Ended September 30,*				*Six Months Ended September 30,*
	*2023*		*2022*		*2023*		*2022*
Cost of revenues	$	59	$	78	$	169	$	107
Research and development		156		177		311		355
Selling, general and administrative		896		764		1,988		1,590
Total	$	1,111	$	1,019	$	2,468	$	2,052

The Company issued 9,000 shares and 681,500 shares of restricted stock during the three and six months ended September 30, 2023, respectively. The Company issued no shares of immediately vested common stock during the three months ended September 30, 2023 and 53,675 shares of immediately vested common stock during the six months ended September 30, 2023. The Company issued 338,500 shares of restricted stock during the three and six months ended September 30, 2022. The Company issued no shares of immediately vested common stock during the three months ended September 30, 2022 and 25,806 shares of immediately vested common stock during the six months ended September 30, 2022. These restricted stock awards generally vest over 2-3 years. Awards for restricted stock include both time-based and performance-based awards. For options and restricted stock awards that vest upon the passage of time, expense is being recorded over the vesting period. Performance-based awards are expensed over the requisite service period based on probability of achievement.

The estimated fair value of the Company’s stock-based awards, less expected annual forfeitures, is amortized over the awards’ service period. The total unrecognized compensation cost for unvested stock options was less than $0.1 million for the six months ended September 30, 2023. This expense will be recognized over a weighted average of approximately 0.7 years. The total unrecognized compensation cost for unvested outstanding restricted stock was $6.8 million for the six months ended September 30, 2023. This expense will be recognized over a weighted-average expense period of approximately 2.0 years.

The Company granted no stock options during the three and six months ended September 30, 2023. The Company granted no stock options in the three months ended September 30, 2022, and 20,564 stock options during the six months ended September 30, 2022. The stock options granted during the six months ended September 30, 2022 will vest over 2 years. The weighted average assumptions used in the Black Scholes valuation model for stock options granted during the six months ended September 30, 2022 are as follows:

Expected volatility		71.40	%
Risk-free interest rate		3.10	%
Expected life (years)		6.14
Dividend yield	None

4. Computation of Net Loss per Common Share

Basic net loss per share (“EPS”) is computed by dividing net loss by the weighted-average number of common shares outstanding for the period. Where applicable, diluted EPS is computed by dividing the net loss by the weighted-average number of common shares and dilutive common equivalent shares outstanding during the period, calculated using the treasury stock method. Common equivalent shares include the effect of restricted stock, exercise of stock options and warrants and contingently issuable shares. Stock options and warrants that are out-of-the-money with exercise prices greater than the average market price of the underlying common shares and shares of performance-based restricted stock where the contingency was not met are excluded from the computation of diluted EPS as the effect of their inclusion would be anti-dilutive. For each of the three and six months ended September 30, 2023, 1.0 million shares were not included in the calculation of diluted EPS. Of these, 1.0 million relate to shares tied to the contingent consideration derivative liability for which the contingency has not yet been met, and less than 0.1 million relate to outstanding stock options as they were considered anti-dilutive. For each of the three and six months ended September 30, 2022, 1.1 million shares were not included in the calculation of diluted EPS. Of these, 1.0 million relate to shares tied to the contingent consideration derivative liability for which the contingency has not yet been met, and 0.1 million relate to outstanding stock options as they were considered anti-dilutive.

The following table reconciles the numerators and denominators of the earnings per share calculation for the three and six months ended September 30, 2023 and 2022 (in thousands, except per share data):

	*Three Months Ended September 30,*						*Six Months Ended September 30,*
	*2023*			*2022*			*2023*			*2022*
Numerator:
Net loss	$	(2,485	)	$	(9,881	)	$	(7,883	)	$	(18,590	)
Denominator:
Weighted-average shares of common stock outstanding		30,283			28,775			29,996			28,648
Weighted-average shares subject to repurchase		(1,455	)		(908	)		(1,451	)		(934	)
Shares used in per-share calculation ― basic		28,828			27,867			28,545			27,714
Shares used in per-share calculation ― diluted		28,828			27,867			28,545			27,714
Net loss per share ― basic	$	(0.09	)	$	(0.35	)	$	(0.28	)	$	(0.67	)
Net loss per share ― diluted	$	(0.09	)	$	(0.35	)	$	(0.28	)	$	(0.67	)

5. Goodwill and Other Intangibles

Goodwill

Goodwill represents the difference between the purchase price and the fair value of the identifiable tangible and intangible net assets when accounted for using the purchase method of accounting. Goodwill is not amortized but reviewed for impairment. Goodwill is reviewed annually on February 28th and whenever events or changes in circumstances indicate that the carrying value of the goodwill might not be recoverable.

There were no changes to goodwill during the six months ended September 30, 2023 or year ended March 31, 2023.

The Company did not identify any triggering events in the three and six months ended September 30, 2023 that would require interim impairment testing of goodwill.

Other Intangibles

Intangible assets at September 30, 2023 and March 31, 2023 consisted of the following (in thousands):

	*September 30, 2023*							*March 31, 2023*
	*Gross Amount*		*Accumulated Amortization*			*Net Book Value*		*Gross Amount*		*Accumulated Amortization*			*Net Book Value*		*Estimated Useful Life*
Backlog		681		(681	)		—		681		(675	)	$	6		2
Trade name and trademarks		1,800		—			1,800		1,800		—			1,800	Indefinite
Customer relationships		9,600		(5,815	)		3,785		9,600		(4,980	)		4,620		7
Core technology and know-how		5,970		(4,110	)		1,860		5,970		(3,869	)		2,101		5-10
Intangible assets	$	18,051	$	(10,606	)	$	7,445	$	18,051	$	(9,524	)	$	8,527

The Company recorded intangible amortization expense related to customer relationship and core technology and know-how of $0.5 million and $1.1 million, in the three and six months ended September 30, 2023, respectively, and $0.7 million and $1.4 million in the three and six months ended September 30, 2022, respectively. Additionally, the Company recorded no intangible amortization related to backlog that is reported in cost of revenues in the three months ended September 30, 2023 and less than $0.1 million in the six months ended September 30, 2023. The Company recorded no intangible amortization related to backlog in the three months ended September 30, 2022 and the Company recorded less than $0.1 million related to backlog that is reported in cost of revenues in the six months ended September 30, 2022, respectively.

Expected future amortization expense related to intangible assets is as follows (in thousands):

Years ending March 31,	*Total*
2024		1,076
2025		1,648
2026		1,221
2027		1,085
2028		543
Thereafter		72
Total	$	5,645

The Company's intangible assets relate entirely to the Grid business segment operations in the United States.

6. Fair Value Measurements

A valuation hierarchy for disclosure of the inputs to valuation used to measure fair value has been established. This hierarchy prioritizes the inputs into three broad levels as follows:

Level 1	-	Inputs are unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date.

Level 2	-	Inputs include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability, and inputs that are derived principally from or corroborated by observable market data by correlation or other means (market corroborated inputs).

Level 3	-	Unobservable inputs that reflect the Company’s assumptions that market participants would use in pricing the asset or liability. The Company develops these inputs based on the best information available, including its own data.

The Company provides a gross presentation of activity within Level 3 measurement roll-forward and details of transfers in and out of Level 1 and 2 measurements. A change in the hierarchy of an investment from its current level is reflected in the period during which the pricing methodology of such investment changes. Disclosure of the transfer of securities from Level 1 to Level 2 or Level 3 is made in the event that the related security is significant to total cash and investments. The Company did not have any transfers of assets and liabilities from Level 1, Level 2 or Level 3 of the fair value measurement hierarchy during the six months ended September 30, 2023.

A financial asset’s or liability’s classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement.

Valuation Techniques

Cash Equivalents

Cash equivalents consist of highly liquid instruments with maturities of three months or less that are regarded as high quality, low risk investments, are measured using such inputs as quoted prices and are classified within Level 1 of the valuation hierarchy. Cash equivalents consist principally of certificates of deposits and money market accounts.

Contingent Consideration

Contingent consideration relates to the earnout payment set forth in the Stock Purchase Agreement governing the acquisition of Northeast Power Systems, Inc ("NEPSI") that provides that the selling stockholders may receive up to an additional 1,000,000 shares of common stock of the Company upon the achievement of certain specified revenue objectives over varying periods of up to four years following the NEPSI Acquisition Date. See Note 13, "Contingent Consideration" for further discussion. The Company relied on a Monte Carlo method to determine the fair value of the contingent consideration on the closing of the acquisition of NEPSI and continues to revalue the fair value of the contingent consideration using the same method at each subsequent balance sheet date until the contingencies are resolved and the shares to be issued are determined, with the change in fair value recorded in the current period operating loss.

The following table provides the assets and liabilities carried at fair value on a recurring basis, measured as of September 30, 2023 and March 31, 2023 (in thousands):

	*Total Carrying Value*		*Quoted Prices in Active Markets (Level 1)*		*Significant Other Observable Inputs (Level 2)*		*Significant Unobservable Inputs (Level 3)*
September 30, 2023:
Assets:
Cash equivalents	$	5,157	$	5,157	$	—	$	—
Derivative liabilities:
Contingent consideration	$	3,470	$	—	$	—	$	3,470

	*Total Carrying Value*		*Quoted Prices in Active Markets (Level 1)*		*Significant Other Observable Inputs (Level 2)*		*Significant Unobservable Inputs (Level 3)*
March 31, 2023:
Assets:
Cash equivalents	$	7,913	$	7,913	$	—	$	—
Derivative liabilities:
Contingent consideration	$	1,270	$	—	$	—	$	1,270

The table below reflects the activity for the Company’s contingent consideration derivative liability measured at fair value on a recurring basis (in thousands):

	*Acquisition Contingent Consideration*
Balance at March 31, 2022	$	1,200
Change in fair value		70
Balance at March 31, 2023		1,270
Change in fair value		2,200
Balance at September 30, 2023	$	3,470

7. Accounts Receivable

Accounts receivable at September 30, 2023 and March 31, 2023 consisted of the following (in thousands):

	*September 30, 2023*		*March 31, 2023*
Accounts receivable (billed)	$	21,174	$	20,707
Accounts receivable (unbilled)		6,335		9,958
Accounts receivable, net	$	27,509	$	30,665

8. Inventory

Inventory, net of reserves, at September 30, 2023 and March 31, 2023 consisted of the following (in thousands):

	*September 30, 2023*		*March 31, 2023*
Raw materials	$	19,337	$	16,654
Work-in-process		22,714		15,200
Finished goods		3,709		2,996
Deferred program costs		2,075		2,136
Net inventory	$	47,835	$	36,986

The Company recorded inventory write-downs of $0.7 million and $0.7 million for the three months ended September 30, 2023 and 2022, respectively. The Company recorded inventory write-downs of $1.1 million and $1.0 million for the six months ended September 30, 2023 and 2022, respectively. These write-downs were based on the Company's evaluation of its inventory on hand for excess quantities and obsolescence.

Deferred program costs as of September 30, 2023 and March 31, 2023, primarily represent costs incurred on programs where the Company needs to complete performance obligations before the related revenue and costs will be recognized.

9. Prepaid and Other Current Assets

During fiscal 2022, the Company conducted an analysis as to whether it was entitled to employee retention credits (“ERC”) under the CARES Act as amended by the Taxpayer Certainty and Disaster Tax Relief Act of 2020 and the American Rescue Plan Act of 2021. Based on the analysis, the Company determined that it was entitled to an ERC of approximately $3.3 million related to payroll taxes paid in the first and second quarters of 2021 and the first quarter of 2020. The Company determined it met all the criteria required under the gross receipts test of the applicable Internal Revenue Service regulations related to ERCs.

As accounting for payroll tax credits are not within the scope of ASC 740, Income Taxes, the Company has chosen to account for the ERCs by analogizing to the International Accounting Standards Board IAS 20, Accounting for Government Grants and Disclosure of Government Assistance. In accordance with IAS 20, an entity recognizes government grants only when there is reasonable assurance that the entity will comply with the conditions attached to them and the grants will be received. The Company evaluated its eligibility for the ERC and determined that it met all the criteria to claim a refundable tax credit against the employer portion of Social Security taxes for up to 70% of the qualified wages the Company paid to employees for the three month periods ended March 31, 2021 and June 30, 2021 and for up to 50% of the qualified wages the Company paid to employees for the three month period ended March 31, 2020.

The Company recorded a $3.3 million receivable in Prepaid expenses and other current assets and a benefit of $1.8 million to Cost of revenues, $0.8 million to SG&A and $0.7 million to Research and development in the fiscal year ended March 31, 2023 for the ERC that is expected to be received based on the amended filings. During the six months ended September 30, 2023, the Company received $3.0 million for the initial claims that were processed. The remaining balance is expected to be received during the remainder of fiscal 2023.

10. Property, Plant and Equipment

The cost and accumulated depreciation of property, plant and equipment at September 30, 2023 and March 31, 2023 are as follows (in thousands):

	*September 30, 2023*			*March 31, 2023*
Land	$	980		$	980
Construction in progress - equipment		342			748
Buildings		5,416			5,416
Equipment and software		43,915			43,156
Finance lease - right of use asset		1			1
Furniture and fixtures		1,531			1,535
Leasehold improvements		6,812			6,815
Property, plant and equipment, gross		58,997			58,651
Less accumulated depreciation		(47,414	)		(46,342	)
Property, plant and equipment, net	$	11,583		$	12,309

Depreciation expense was $0.6 million and $0.7 million for the three months ended September 30, 2023 and 2022, respectively. Depreciation expense was $1.2 million and $1.4 million for the six months ended September 30, 2023 and 2022, respectively.

11. Accounts Payable and Accrued Expenses

Accounts payable and accrued expenses at September 30, 2023 and March 31, 2023 consisted of the following (in thousands):

	*September 30, 2023*		*March 31, 2023*
Accounts payable	$	11,393	$	13,935
Accrued inventories in-transit		1,123		2,267
Accrued other miscellaneous expenses		4,237		3,870
Accrued contract loss		2,584		3,464
Advanced deposits		1,156		5,653
Accrued compensation		6,041		5,430
Income taxes payable		297		409
Accrued product warranty		1,892		2,638
Accrued restructuring		226		717
Total	$	28,949	$	38,383

The Company generally provides a one to three year warranty on its products, commencing upon delivery or installation where applicable. A provision is recorded upon revenue recognition to cost of revenues for estimated warranty expense based on historical experience.

Product warranty activity was as follows (in thousands):

	*Three Months Ended September 30,*						*Six Months Ended September 30,*
	*2023*			*2022*			*2023*			*2022*
Balance at beginning of period	$	1,926		$	1,942		$	2,638		$	2,066
Provisions for warranties during the period		644			479			852			656
Settlements during the period		(678	)		(368	)		(1,598	)		(669	)
Balance at end of period	$	1,892		$	2,053		$	1,892		$	2,053

12. Income Taxes

The Company recorded income tax expense of $0.1 million and $0.2 million in the three and six months ended September 30, 2023, respectively. The Company recorded an income tax benefit of less than $0.1 million and an income tax expense of less than $0.1 million in the three and six months ended September 30, 2022, respectively.

Accounting for income taxes requires a two-step approach to recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if, based on the technical merits, it is more likely than not the position will be sustained upon audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50% likely to be realized upon ultimate settlement. The Company re-evaluates these uncertain tax positions on a quarterly basis. The evaluation is based on factors including, but not limited to, changes in facts or circumstances, changes in tax law, effectively settled issues under audit and new audit activity. Any changes in these factors could result in the recognition of a tax benefit or an additional charge to the tax provision. The Company did not identify any uncertain tax positions in the six months ended September 30, 2023 and did not have any gross unrecognized tax benefits as of September 30, 2023.

13. Contingent Consideration

Acquisition of NEPSI

On October 1, 2020 (the "NEPSI Acquisition Date"), the Company entered into a Stock Purchase Agreement (the "NEPSI Stock Purchase Agreement") with the selling stockholders named therein. Pursuant to the terms of the NEPSI Stock Purchase Agreement and concurrently with entering into such agreement, the Company acquired all of the issued and outstanding (i) shares of capital stock of NEPSI, and (ii) membership interests of Northeast Power Realty, LLC, a New York limited liability company, which holds the real property that serves as NEPSI's headquarters (the "NEPSI Acquisition"). NEPSI is a U.S.-based global provider of medium-voltage metal-enclosed power capacitor banks and harmonic filter banks for use on electric power systems. NEPSI is a wholly-owned subsidiary of the Company and is operated by its Grid business unit. The purchase price was $26.0 million in cash and 873,657 restricted shares of common stock of the Company. As part of the transaction, the selling stockholders may receive up to an additional 1,000,000 shares of common stock of the Company upon the achievement of certain specified revenue objectives during varying periods of up to four years following closing of the NEPSI Acquisition. NEPSI has recognized revenues in excess of $75.0 million during the three years after the NEPSI Acquisition Date. As a result, the Company expects to issue 400,000 shares of common stock of the Company to the selling stockholders during the quarter ending December 31, 2023, upon certification of the achievement of specified earnout revenue objectives.

Contingent Consideration

The Company evaluated the NEPSI Acquisition earnout payment set forth in the NEPSI Stock Purchase Agreement, which is expected to require settlement in the Company's common stock, and determined the contingent consideration qualified for liability classification and derivative treatment under ASC 815, Derivatives and Hedging. As a result, for each period, the fair value of the contingent consideration will be remeasured and the resulting gain or loss will be recognized in operating expenses until the share amount is fixed.

Following is a summary of the key assumptions used in a Monte Carlo simulation to calculate the fair value of the contingent consideration related to the NEPSI Acquisition:

		*September 30,*			*June 30,*
Fiscal Year 2023		*2023*			*2023*
Revenue risk premium		5.30	%		5.20	%
Revenue volatility		27.5	%		23	%
Stock Price	$	7.55		$	6.26
Payment delay (days)		80			80
Fair value (millions)	$	3.5		$	2.6

	*March 31,*			*December 31,*			*September 30,*			*June 30,*			*March 31,*
Fiscal Year 2022	*2023*			*2022*			*2022*			*2022*			*2022*
Revenue risk premium		5.30	%		5.30	%		5.20	%		6.60	%		6.50	%
Revenue volatility		25	%		25	%		25	%		30	%		33	%
Stock Price	$	4.91		$	3.68		$	4.38		$	5.18		$	7.61
Payment delay (days)		80			80			80			80			80
Fair value (millions)	$	1.3		$	0.9		$	1.1		$	1.4		$	1.2

The Company recorded net losses of $0.9 million and $2.2 million resulting from the increases in the fair value of the contingent consideration in the three and six months ended September 30, 2023, respectively. The Company recorded a net gain of $0.3 million and $0.1 million resulting from the decrease in the fair value of the contingent consideration in the three and six months ended September 30, 2022, respectively.

14. Debt

As part of the acquisition of Neeltran, the Company identified four equipment financing agreements that Neeltran had entered into prior to the acquisition of Neeltran on May 6, 2021. The current debt balance is $0.1 million as of September 30, 2023 and March 31, 2023.

15. Leases

The Company determines whether a contract is or contains a lease at inception of a contract. The Company defines a lease as a contract, or part of a contract, that conveys the right to control the use of identified property or equipment (an identified asset) for a period of time in exchange for consideration. Control over the use of the identified asset means that the Company has both the right to obtain substantially all of the economic benefits from the use of the asset and the right to direct the use of the asset.

The discount rate was calculated using an incremental borrowing rate based on an assessment prepared by the Company through the use of Company credit ratings, consideration of its lease populations potential risk to its total capital structure, and a market rate for a collateralized loan for its risk profile, calculated by a third party.

Operating Leases

All significant lease arrangements are recognized at lease commencement. Operating lease right–of-use assets and lease liabilities are recognized at commencement. The operating lease right-of-use asset includes any lease payments related to initial direct cost and prepayments and excludes any lease incentives. Lease expense is recognized on a straight-line basis over the lease term. The Company enters into a variety of operating lease agreements through the normal course of its business, but primarily real estate leases to support its operations. The real estate lease agreements generally provide for fixed minimum rental payments and the payment of real estate taxes and insurance. Many of these real estate leases have one or more renewal options that allow the Company, at its discretion, to renew the lease for varying periods up to five years or to terminate the lease. Only renewal options or termination rights that the Company believed were likely to be exercised were included in the lease calculations.

The Company also enters into leases for vehicles, IT equipment and service agreements, and other leases related to its manufacturing operations that are also included in the right-of-use assets and lease liability accounts if they are for a term of longer than twelve months. However, many of these leases are either short-term in nature or immaterial. The Company has made the policy election to exclude short-term leases from the condensed consolidated balance sheet.

Finance Leases

As of September 30, 2023, the right-of-use asset related to the finance lease, net of accumulated amortization is less than $0.1 million, and is included in the property and equipment, net on the Company's condensed consolidated balance sheet.

Finance lease right-of-use assets and lease liabilities are recognized similar to an operating lease, at the lease commencement date or the date the lessor makes the leased asset available for use. Finance lease right-of-use assets are generally amortized on a straight-line basis over the lease term, and the carrying amount of the finance lease liabilities are (1) accreted to reflect interest using the incremental borrowing rate if the rate implicit in the lease is not readily determinable, and (2) reduced to reflect lease payments made during the period. Amortization expense for finance lease right-of-use assets and interest accretion on finance lease liabilities are recorded to depreciation expense and interest expense, respectively in the Company's condensed consolidated statement of operations.

Supplemental balance sheet information related to leases at September 30, 2023, and March 31, 2023 are as follows (in thousands):

	*September 30, 2023*			*March 31, 2023*
Leases:
Right-of-use assets - Financing	$	-			1
Right-of-use assets - Operating		2,493			2,857
Total right-of-use assets		2,493			2,858

Lease liabilities - ST Financing	$	-			1
Lease liabilities - ST Operating		696			807
Lease liabilities - LT Operating		1,929			2,184
Total lease liabilities	$	2,625			2,992

Weighted-average remaining lease term		3.7 years			3.95 years
Weighted-average discount rate		8.48	%		6.46	%

The costs related to the Company's finance lease are not material. The costs related to the Company's operating leases for the three and six months ended September 30, 2023 and 2022 are as follows (in thousands):

	*Three Months Ended*		*Six Months Ended*
	*September 30, 2023*		*September 30, 2023*
Operating Leases:
Operating lease costs - fixed	$	255	$	514
Operating lease costs - variable		40		79
Short-term lease costs		37		74
Total lease costs	$	332	$	667

	*Three Months Ended*		*Six Months Ended*
	*September 30, 2022*		*September 30, 2022*
Operating Leases:
Operating lease costs - fixed	$	262	$	504
Operating lease costs - variable		41		76
Short-term lease costs		30		61
Total lease costs	$	333	$	641

The Company’s estimated minimum future lease obligations under the Company's leases are as follows (in thousands):

	*Leases*
Year ending March 31,
2024	$	472
2025		803
2026		755
2027		614
2028		392
Thereafter		15
Total minimum lease payments		3,051
Less: interest		(426	)
Present value of lease liabilities	$	2,625

16. Commitments and Contingencies

Legal Contingencies

From time to time, the Company is involved in legal and administrative proceedings and claims of various types. The Company records a liability in its condensed consolidated financial statements for these matters when a loss is known or considered probable and the amount can be reasonably estimated. The Company reviews these estimates each accounting period as additional information is known and adjusts the loss provision when appropriate. If a matter is both probable to result in a liability and the amounts of loss can be reasonably estimated, the Company estimates and discloses the possible loss or range of loss to the extent necessary to make the condensed consolidated financial statements not misleading. If the loss is not probable or cannot be reasonably estimated, a liability is not recorded in its condensed consolidated financial statements.

Other

The Company enters into long-term construction contracts with customers that require the Company to obtain performance bonds. The Company is required to deposit an amount equivalent to some or all the face amount of the performance bonds into an escrow account until the termination of the bond. When the performance conditions are met, amounts deposited as collateral for the performance bonds are returned to the Company. In addition, the Company has various contractual arrangements in which minimum quantities of goods or services have been committed to be purchased on an annual basis.

As of September 30, 2023, the Company had $0.6 million of restricted cash included in long-term assets and $0.5 million of restricted cash included in current assets. As of March 31, 2023, the Company had $0.6 million of restricted cash included in long term assets and $1.7 million of restricted cash included in current assets. These amounts included in restricted cash primarily represent deposits to secure letters of credit for various supply contracts and long-term projects or collateral deposits. These deposits are held in interest bearing accounts.

17. Restructuring

The Company accounts for charges resulting from operational restructuring actions in accordance with ASC Topic 420, Exit or Disposal Cost Obligations (“ASC 420”) and ASC Topic 712, Compensation—Nonretirement Postemployment Benefits (“ASC 712”). In accounting for these obligations, the Company is required to make assumptions related to the amounts of employee severance, benefits, and related costs and the time period over which leased facilities will remain vacant, sublease terms, sublease rates and discount rates. Estimates and assumptions are based on the best information available at the time the obligation arises. These estimates are reviewed and revised as facts and circumstances dictate; changes in these estimates could have a material effect on the amount accrued on the condensed consolidated balance sheet.

On January 24, 2023, the Company approved a plan to reduce its global workforce by approximately 5%, effective as of such date. The purpose of the workforce reduction was to reduce operating expenses to better align with the Company’s current revenues. In fiscal 2022 through second quarter of fiscal 2023, the Company recorded restructuring charges of $1.0 million as a result of this reduction in force, which was comprised of severance pay. All amounts related to these restructuring activities are expected to be paid by March 31, 2024.

The following table presents restructuring charges and cash payments during the six months ended September 30, 2023 and year ended March 31, 2023 (in thousands):

	*Severance pay*
	*and benefits*
Accrued restructuring balance at April 1, 2023	$	717
Charges to operations		(14	)
Cash payments		(477	)
Accrued restructuring balance at September 30, 2023	$	226

	Severance pay
	and benefits
Accrued restructuring balance at April 1, 2022	$	—
Charges to operations		1,048
Cash payments		(331	)
Accrued restructuring balance at March 31, 2023	$	717

All restructuring charges discussed above are included within restructuring in the Company’s condensed consolidated statements of operations. The Company includes accrued restructuring within accounts payable and accrued expenses in the condensed consolidated balance sheets. The Company's restructuring charges relate primarily to the Grid business segment operations in the United States.

18. Business Segments

The Company reports its financial results in two reportable business segments: Grid and Wind. In accordance with ASC 280, Segment Reporting, we aggregate four operating segments into one reporting segment for financial reporting purposes due to their similar operating and financial characteristics. Our operating segments reflect the way in which internally-reported financial information is used to make decisions and allocate resources.

Through the Company’s power grid offerings, the Grid business segment enables electric utilities, industrial facilities, and renewable energy project developers to connect, transmit and distribute smarter, cleaner and better power through its transmission planning services, power electronics, and superconductor-based systems. The sales process is enabled by transmission planning services that allow it to identify power grid congestion, poor power quality and other risks, which helps the Company determine how its solutions can improve network performance. These services often lead to sales of grid interconnection solutions for wind farms and solar power plants, power quality systems, and transmission and distribution cable systems. The Company also sells ship protection products to the U.S. Navy through its Grid business segment.

Through the Company’s wind power offerings, the Wind business segment enables manufacturers to field highly competitive wind turbines through its advanced power electronics and control system products, engineered designs, and support services. The Company supplies advanced power electronics and control systems, licenses its highly engineered wind turbine designs, and provides extensive customer support services to wind turbine manufacturers. The Company’s design portfolio includes a broad range of drive trains and power ratings of 2 megawatts ("MWs") and higher. The Company provides a broad range of power electronics and software-based control systems that are highly integrated and designed for optimized performance, efficiency, and grid compatibility.

The operating results for the two business segments are as follows (in thousands):

	*Three Months Ended September 30,*				*Six Months Ended September 30,*
	*2023*		*2022*		*2023*		*2022*
Revenues:
Grid	$	28,515	$	25,698	$	54,251	$	45,527
Wind		5,489		1,982		10,007		4,833
Total	$	34,004	$	27,680	$	64,258	$	50,360

	*Three Months Ended September 30,*						*Six Months Ended September 30,*
	*2023*			*2022*			*2023*			*2022*
Operating income (loss):
Grid	$	(679	)	$	(6,495	)	$	(2,649	)	$	(13,776	)
Wind		252			(868	)		(398	)		(1,254	)
Unallocated corporate expenses		(1,942	)		(729	)		(4,655	)		(1,931	)
Total	$	(2,369	)	$	(8,092	)	$	(7,702	)	$	(16,961	)

The accounting policies of the business segments are the same as those for the consolidated Company. The Company’s business segments have been determined in accordance with the Company’s internal management structure, which is organized based on operating activities. The Company evaluates performance based upon several factors, of which the primary financial measures are segment revenues and segment operating loss. The disaggregated financial results of the segments reflect allocation of certain functional expense categories consistent with the basis and manner in which Company management internally disaggregates financial information for the purpose of assisting in making internal operating decisions. In addition, certain corporate expenses which the Company does not believe are specifically attributable or allocable to either of the two business segments have been excluded from the segment operating loss.

Unallocated corporate expenses consisted of a loss on contingent consideration of $0.9 million and $2.2 million in the three and six months ended September 30, 2023, respectively. Unallocated corporate expenses consisted of a gain on contingent consideration of $0.3 million and $0.1 million in the three and six months ended September 30, 2022. Additionally, unallocated corporate expenses consisted of stock-based compensation expense of $1.1 million and $1.0 million in the three months ended September 30, 2023 and 2022, respectively, and $2.5 million and $2.1 million in the six months ended September 30, 2023 and 2022, respectively.

Total assets for the two business segments as of September 30, 2023 and March 31, 2023, are as follows (in thousands):

	*September 30, 2023*		*March 31, 2023*
Grid	$	137,607	$	135,296
Wind		9,750		14,361
Corporate assets		23,970		25,904
Total	$	171,327	$	175,561

19. Recent Accounting Pronouncements

In June 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The amendments in ASU 2016-13 will provide more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. Following the release of ASU 2019-10 in November 2019, the effective date, as long as the Company remains a smaller reporting company, was annual reporting periods beginning after December 15, 2022. As of April 1, 2023, the Company has adopted ASU 2016-13 and noted no material impact on its condensed consolidated financial statements.

In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. The amendments in ASU 2021-08 will improve the accounting for acquired revenue contracts with customers in a business combination. Following the release of ASU 2021-08 in October 2021, the effective date was annual reporting periods beginning after December 15, 2022. As of April 1, 2023, the Company has adopted ASU 2021-08 and noted no material impact on its condensed consolidated financial statements.

20. Subsequent Events

The Company has performed an evaluation of subsequent events through the time of filing this Quarterly Report on Form 10-Q with the SEC and has determined that there are no such events to report.

AMERICAN SUPERCONDUCTOR CORPORATION

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS

ITEM 2.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). For this purpose, any statements contained herein that relate to future events or conditions, including without limitation, the statements in Part II, “Item 1A. Risk Factors” and in Part I under “Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations” and located elsewhere herein regarding industry prospects, our prospective results of operations or financial position, the benefits of our acquisitions of Northeast Power Systems, Inc. ("NEPSI") and Neeltran, Inc. ("Neeltran"), contingent payments related to the NEPSI acquisition, changes in macroeconomic and market conditions, including increasing inflation and impacts from the COVID-19 pandemic, sourcing, production disruption, material delays and global supply chain disruptions and adoption of accounting changes may be deemed to be forward-looking statements. Without limiting the foregoing, the words “believes,” “anticipates,” “plans,” “expects,” and similar expressions are intended to identify forward-looking statements. Such forward-looking statements represent management’s current expectations and are inherently uncertain. There are a number of important factors that could materially impact the value of our common stock or cause actual results to differ materially from those indicated by such forward-looking statements. These important factors include but are not limited to: We have a history of operating losses, which may continue in the future. Our operating results may fluctuate significantly from quarter to quarter and may fall below expectations in any particular fiscal quarter; We have a history of negative operating cash flows, and we may require additional financing in the future, which may not be available to us; We may be required to issue performance bonds or provide letters of credit, which restricts our ability to access any cash used as collateral for the bonds or letters of credit; Changes in exchange rates could adversely affect our results of operations; If we fail to maintain proper and effective internal control over financial reporting, our ability to produce accurate and timely financial statements could be impaired and may lead investors and other users to lose confidence in our financial data; We may not realize all of the sales expected from our backlog of orders and contracts; Our contracts with the U.S. government are subject to audit, modification or termination by the U.S. government and include certain other provisions in favor of the government. The continued funding of such contracts remains subject to annual congressional appropriation, which, if not approved, could reduce our revenue and lower or eliminate our profit; The COVID-19 pandemic has adversely impacted our business, financial condition and results of operations and other future pandemics or health crises may have similar impacts; Changes in U.S. government defense spending could negatively impact our financial position, results of operations, liquidity and overall business; We rely upon third-party suppliers for the components and subassemblies of many of our Grid and Wind products, making us vulnerable to supply shortages and price fluctuations, which could harm our business; Uncertainty surrounding our prospects and financial condition may have an adverse effect on our customer and supplier relationships; We have not manufactured our Amperium wire in commercial quantities, and a failure to manufacture our Amperium wire in commercial quantities at acceptable cost and quality levels would substantially limit our future revenue and profit potential; Our success is dependent upon attracting and retaining qualified personnel and our inability to do so could significantly damage our business and prospects; A significant portion of our Wind segment revenues are derived from a single customer. If this customer's business is negatively affected, it could adversely impact our business; Our success in addressing the wind energy market is dependent on the manufacturers that license our designs; Our business and operations would be adversely impacted in the event of a failure or security breach of our or any critical third parties information technology infrastructure and networks; Failure to comply with evolving data privacy and data protection laws and regulations or to otherwise protect personal data, may adversely impact our business and financial results; Many of our revenue opportunities are dependent upon subcontractors and other business collaborators; If we fail to implement our business strategy successfully, our financial performance could be harmed; Problems with product quality or product performance may cause us to incur warranty expenses and may damage our market reputation and prevent us from achieving increased sales and market share; Many of our customers outside of the United States may be either directly or indirectly related to governmental entities, and we could be adversely affected by violations of the United States Foreign Corrupt Practices Act and similar worldwide anti-bribery laws outside the United States; We have had limited success marketing and selling our superconductor products and system-level solutions, and our failure to more broadly market and sell our products and solutions could lower our revenue and cash flow; We may acquire additional complementary businesses or technologies, which may require us to incur substantial costs for which we may never realize the anticipated benefits; We or third parties on whom we depend may be adversely affected by natural disasters, including events resulting from climate change, and our business continuity and disaster recovery plans may not adequately protect us or our value chain from such events; Adverse changes in domestic and global economic conditions could adversely affect our operating results; Our international operations are subject to risks that we do not face in the United States, which could have an adverse effect on our operating results; Adverse changes in domestic and global economic conditions could adversely affect our operating results; We have operations in, and depend on sales in, emerging markets, including India, and global conditions could negatively affect our operating results or limit our ability to expand our operations outside of these markets. Changes in India's political, social, regulatory and economic environment may affect our financial performance; Our products face competition, which could limit our ability to acquire or retain customers; Our products face competition, which could limit our ability to acquire or retain customers; Industry consolidation could result in more powerful competitors and fewer customers; Our products face competition, which could limit our ability to acquire or retain customers; Industry consolidation could result in more powerful competitors and fewer customers; Our international operations are subject to risks that we do not face in the United States, which could have an adverse effect on our operating results; Growth of the wind energy market depends largely on the availability and size of government subsidies, economic incentives and legislative programs designed to support the growth of wind energy; Lower prices for other fuel sources may reduce the demand for wind energy development, which could have a material adverse effect on our ability to grow our Wind business; We may be unable to adequately prevent disclosure of trade secrets and other proprietary information; Our patents may not provide meaningful protection for our technology, which could result in us losing some or all of our market position; There are a number of technological challenges that must be successfully addressed before our superconductor products can gain widespread commercial acceptance, and our inability to address such technological challenges could adversely affect our ability to acquire customers for our products; Third parties have or may acquire patents that cover the materials, processes and technologies we use or may use in the future to manufacture our Amperium products, and our success depends on our ability to license such patents or other proprietary rights; Our technology and products could infringe intellectual property rights of others, which may require costly litigation and, if we are not successful, could cause us to pay substantial damages and disrupt our business; We face risks related to our legal proceedings; We face risks related to our common stock; and the other important factors discussed under the caption "Risk Factors" in Part 1. Item 1A of our Annual Report on Form 10-K for the fiscal year ended March 31, 2023, and our other reports filed with the SEC. These important factors, among others, could cause actual results to differ materially from those indicated by forward-looking statements made herein and presented elsewhere by management from time to time. Any such forward-looking statements represent management’s estimates as of the date of this Quarterly Report on Form 10-Q. While we may elect to update such forward-looking statements at some point in the future, we disclaim any obligation to do so, even if subsequent events cause our views to change. These forward-looking statements should not be relied upon as representing our views as of any date subsequent to the date of this Quarterly Report on Form 10-Q.

American Superconductor®, Amperium®, AMSC®, D-VAR®, PowerModule™, D-VAR VVO®, PQ-IVR®, SeaTitan®, Gridtec™ Solutions, Windtec™ Solutions, Smarter, Cleaner...Better Energy™, Orchestrate the Rhythm and Harmony of Power on the Grid™, actiVAR®, armorVAR™, NEPSI™ and Neeltran™ and SafetyLOCK™ are trademarks or registered trademarks of American Superconductor Corporation or our subsidiaries. We reserve all of our rights with respect to our trademarks or registered trademarks regardless of whether they are so designated in this Quarterly Report on Form 10-Q by an ® or ™ symbol. All other brand names, product names, trademarks or service marks appearing in this Quarterly Report on Form 10-Q are the property of their respective holders.

Executive Overview

We are a leading system provider of megawatt-scale power resiliency solutions that Orchestrate the Rhythm and Harmony of Power on the Grid™, and protect and expand the capability of our Navy's fleet. Our solutions enhance the performance of the power grid, protect our Navy’s fleet, and lower the cost of wind power. In the power grid market, we enable electric utilities, industrial facilities, and renewable energy project developers to connect, transmit and distribute smarter, cleaner and better power through our transmission planning services and power electronics and superconductor-based systems. In the wind power market, we enable manufacturers to field highly competitive wind turbines through our advanced power electronics and control system products, engineering, and support services. Our power grid and wind products and services provide exceptional reliability, security, efficiency and affordability to our customers.

Our power system solutions help to improve energy efficiency, alleviate power grid capacity constraints, improve system resiliency, and increase the adoption of renewable energy generation. Demand for our solutions is driven by the growing needs for modernized smart grids that improve power reliability, security and quality, the U.S. Navy's effort to upgrade in-board power systems to support fleet electrification, and the need for increased renewable sources of electricity, such as wind and solar energy. Concerns about these factors have led to increased spending by corporations and the military, as well as supportive government regulations and initiatives on local, state, and national levels, including renewable portfolio standards, tax incentives and international treaties.

We manufacture products using two proprietary core technologies: PowerModule™ programmable power electronic converters and our Amperium® high temperature superconductor (“HTS”) wires. These technologies and our system-level solutions are protected by a broad and deep intellectual property portfolio consisting of hundreds of patents and licenses worldwide.

We operate our business under two market-facing business units: Grid and Wind. We believe this market-centric structure enables us to more effectively anticipate and meet the needs of power generation project developers, the Navy's ship protection systems, electric utilities and wind turbine manufacturers.

•

Grid. Through our Gridtec™ Solutions, our Grid business segment enables electric utilities, industrial facilities, and renewable energy project developers to connect, transmit and distribute power with exceptional efficiency, reliability, security and affordability. We provide transmission planning services that allow us to identify power grid congestion, poor power quality, and other risks, which help us determine how our solutions can improve network performance. These services often lead to sales of our grid interconnection solutions for wind farms and solar power plants, power quality systems and transmission and distribution cable systems. We also sell ship protection products to the U.S. Navy through our Grid business segment.

•

Wind. Through our Windtec™ Solutions, our Wind business segment enables manufacturers to field wind turbines with exceptional power output, reliability and affordability. We supply advanced power electronics and control systems, license our highly engineered wind turbine designs, and provide extensive customer support services to wind turbine manufacturers. Our design portfolio includes a broad range of drivetrains and power ratings of 2 megawatts ("MWs") and higher. We provide a broad range of power electronics and software-based control systems that are highly integrated and designed for optimized performance, efficiency, and grid compatibility.

Our fiscal year begins on April 1 and ends on March 31. When we refer to a particular fiscal year, we are referring to the fiscal year that began on April 1 of that same year. For example, fiscal 2023 refers to the fiscal year that began on April 1, 2023. Other fiscal years follow similarly.

We continue to experience some inflationary pressure in our supply chain and some delays in sourcing materials needed for our products, resulting in some production disruption, both of which have increased our cost of revenues and decreased gross margin. While the impact of inflation has been challenging, we continue to take actions to limit this pressure including adjusting the pricing of our products and services. Changes in macroeconomic and market conditions arising from the COVID-19 pandemic, or for other reasons, such as the ongoing wars between Russia and Ukraine or Israel and Hamas, inflation, rising interest rates, labor force availability, sourcing, material delays and global supply chain disruptions could have a material adverse effect on our business, financial condition and results of operation.

From time-to-time we may undertake restructuring activities in order to align our global organization in a manner that we believe will better position us to achieve our long-term goals. In January 2023, we undertook a reduction in force that involved approximately 5% of our global workforce. This restructuring is expected to incur $1.0 million of cash expenses, $0.8 million of which has been paid as of September 30, 2023, and to result in annualized cost savings of approximately $5.0 million, beginning in fiscal 2023.

In February 2023, we completed the process of determining and verifying our eligibility and amount of payroll tax credits known as the Employee Retention Credit (“ERC”) under the CARES Act which Congress enacted as part of the Taxpayer Certainty and Disaster Tax Relief Act of 2020. This resulted in filing certain amended payroll tax forms for eligible quarters in 2020 and 2021, which, in the aggregate, totaled $3.3 million. We recognized a receivable in prepaid expenses and other current assets and a benefit to cost of revenues and operating expenses in the quarter ended March 31, 2023. During the six months ended September 30, 2023, we received $3.0 million in payments for the initial claims that were processed. The remaining balance is expected to be paid during the remainder of fiscal 2023.

Critical Accounting Policies and Estimates

The preparation of the unaudited condensed consolidated financial statements requires that we make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. We base our estimates on historical experience and various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ under different assumptions or conditions. There were no significant changes in the critical accounting policies that were disclosed in our Annual Report on Form 10-K for the fiscal year ended March 31, 2023.

Results of Operations

Three and six months ended September 30, 2023, compared to the three and six months ended September 30, 2022

Revenues

Total revenues increased 23% to $34.0 million for the three months ended September 30, 2023 and total revenues increased 28% to $64.3 million for the six months ended September 30, 2023, compared to $27.7 million and $50.4 million for the three and six months ended September 30, 2022, respectively. Our revenues are summarized as follows (in thousands):

	Three Months Ended September 30,				Six Months Ended September 30,
	2023		2022		2023		2022
Revenues:
Grid	$	28,515	$	25,698	$	54,251	$	45,527
Wind		5,489		1,982		10,007		4,833
Total	$	34,004	$	27,680	$	64,258	$	50,360

Our Grid business unit accounted for 84% of total revenues for each of the three and six months ended September 30, 2023, respectively, compared to 93% and 90% for the three and six months ended September 30, 2022, respectively. Our Grid business unit revenues increased 11% to $28.5 million in the three months ended September 30, 2023, from $25.7 million in the three months ended September 30, 2022. Our Grid business unit revenues increased 19% to $54.3 million in the six months ended September 30, 2023, from $45.5 million in the six months ended September 30, 2022. The increase in the Grid business unit revenue in the three and six months ended September 30, 2023, compared to the three and six months ended September 30, 2022 was primarily driven by increased shipments of new energy power systems and ship protection systems revenues than in the prior year periods.

Our Wind business unit accounted for 16% of total revenues for each of the three and six months ended September 30, 2023, respectively, compared to 7% and 10% for the three and six months ended September 30, 2022, respectively. Revenues in the Wind business unit increased 177% and 107% to $5.5 million and $10.0 million in the three and six months ended September 30, 2023, from $2.0 million and $4.8 million in the three and six months ended September 30, 2022, respectively. The increase in the three and six months ended September 30, 2023, compared to the three and six months ended September 30, 2022, was driven by additional shipments of electrical control systems ("ECS") at increased prices in the three and six months ended September 30, 2023.

Cost of Revenues and Gross Margin

Cost of revenues decreased by 1% to $25.4 million for the three months ended September 30, 2023, compared to $25.7 million for the three months ended September 30, 2022. Cost of revenues increased by 7% to $49.4 million for the six months ended September 30, 2023, compared to $46.2 million for the six months ended September 30, 2022. Gross margin was 25% and 23% for the three and six months ended September 30, 2023, respectively, compared to 7% and 8% for the three and six months ended September 30, 2022, respectively. The increase in gross margin in the three and six months ended September 30, 2023, was due to higher revenues, a more favorable product mix including increased spares and service revenues and favorable impacts across the business due to pricing increases across our product lines.

Operating Expenses

Research and development

Research and development ("R&D") expenses decreased 29% and 30% in the three and six months ended September 30, 2023, respectively, to $1.6 million from $2.3 million in the three months ended September 30, 2022, and to $3.5 million from $5.0 million in the six months ended September 30, 2022. The decrease in both periods was driven primarily by decreased compensation expense as well as increased labor charges reclassified to cost of goods sold to support revenue generating projects.

Selling, general, and administrative

Selling, general and administrative ("SG&A") expenses increased 8% in the three months ended September 30, 2023, to $7.9 million from $7.3 million in the three months ended September 30, 2022. The increase in SG&A expense in the three months ended September 30, 2023, was due to higher compensation and stock compensation expense than in the prior year period. SG&A expenses increased 6% to $15.8 million in the six months ended September 30, 2023, compared to $14.9 million in the six months ended September 30, 2022. The increase in SG&A expense in the six months ended September 30, 2023, was due to higher overall compensation expense than in the prior year period.

Amortization of acquisition related intangibles

We recorded amortization expense related to our core technology and know-how, customer relationships, and other intangible assets of $0.5 million and $1.1 million in the three and six months ended September 30, 2023, respectively, and $0.7 million and $1.4 million in the three and six months ended September 30, 2022, respectively. The decrease in amortization expense in both periods is a result of using the economic consumption method as the basis to amortize the acquired customer relationship intangible assets from Northeast Power Systems, Inc ("NEPSI") and Neeltran.

Change in fair value of contingent consideration

The change in fair value of our contingent consideration for the earnout payment on the acquisition of NEPSI resulted in a loss of $0.9 million and $2.2 million in the three and six months ended September 30, 2023, respectively, compared to a gain of $0.3 million and $0.1 million in the three and six months ended September 30, 2022, respectively. The change in the fair value was driven by an increased likelihood of achieving certain revenue targets and an increase in the Company's stock price.

NEPSI has recognized revenues in excess of $75 million during the three years after the NEPSI Acquisition Date. As a result, we expect to issue 400,000 shares of common stock of the Company to the selling stockholders during the quarter ending December 31, 2023 upon certification of the achievement of specified earnout revenue objectives.

Operating income (loss)

Our operating income (loss) is summarized as follows (in thousands):

	Three Months Ended September 30,						Six Months Ended September 30,
	2023			2022			2023			2022
Operating income (loss):
Grid	$	(679	)	$	(6,495	)	$	(2,649	)	$	(13,776	)
Wind		252			(868	)		(398	)		(1,254	)
Unallocated corporate expenses		(1,942	)		(729	)		(4,655	)		(1,931	)
Total	$	(2,369	)	$	(8,092	)	$	(7,702	)	$	(16,961	)

Our Grid business segment generated operating losses of $0.7 million and $2.6 million in the three and six months ended September 30, 2023, respectively, compared to operating losses of $6.5 million and $13.8 million in the three and six months ended September 30, 2022, respectively. The decrease in the Grid business unit operating loss in the three and six months ended September 30, 2023, was due to higher revenues and gross margins due to a favorable product mix as well as the reduction of the remaining acquired Neeltran backlog.

Our Wind business segment generated operating income of $0.3 million and operating loss of $0.4 million in the three and six months ended September 30, 2023, respectively, compared to operating losses of $0.9 million and $1.3 million in the three and six months ended September 30, 2022, respectively. The improvement in the Wind business unit operating margin in the three and six months ended September 30, 2023 was due to higher revenues and gross margins from increased sales of ECS units.

Unallocated corporate expenses included a loss on contingent consideration of $0.9 million and $2.2 million in the three and six months ended September 30, 2023, respectively, and a gain on contingent consideration of $0.3 million and $0.1 million in the three and six months ended September 30, 2022, respectively. Additionally, unallocated corporate expenses primarily consisted of stock-based compensation expense of $1.1 million and $2.5 million in the three and six months ended September 30, 2023, respectively, and $1.0 million and $2.1 million in the three and six months ended September 30, 2022, respectively.

Interest income, net

Interest income, net, was $0.2 million and $0.4 million in the three and six months ended September 30, 2023, respectively, compared to less than $0.1 million and $0.1 million in the three and six months ended September 30, 2022, respectively, due to higher earned interest at increased rates in the fiscal year 2023 periods.

China dissolution

China dissolution expense was $1.9 million in each of the three and six months ended September 30, 2022, and there was no similar transaction in the three and six months ended September 30, 2023. The impact of the China dissolution expense during the three and six months ended September 30, 2022, was driven by the liquidation of our China entity, resulting in a foreign currency loss from the cumulative translation release of $1.9 million.

Other income (expense), net

Other expense, net, was $0.2 million and $0.3 million in the three and six months ended September 30, 2023, respectively, compared to other income, net, of $0.1 million and $0.2 million in the three and six months ended September 30, 2022, respectively. The increase in other expense, net, during the three and six months ended September 30, 2023, compared to the three and six months ended September 30, 2022, was driven by the impacts of unfavorable fluctuations in foreign currencies during the periods.

Income Taxes

Income tax expense was $0.1 million and $0.2 million in the three and six months ended September 30, 2023, respectively. Income tax benefit was less than $0.1 million in the three months ended September 30, 2022 and income tax expense was less than $0.1 million in the six months ended September 30, 2022.

Net loss

Net loss was $2.5 million and $7.9 million in the three and six months ended September 30, 2023, respectively, compared to $9.9 million and $18.6 million in the three and six months ended September 30, 2022, respectively. The decrease in net loss in both periods was driven primarily by the increased revenues and gross margins.

Non-GAAP Financial Measure - Non-GAAP Net Income (Loss)

Generally, a non-GAAP financial measure is a numerical measure of a company’s performance, financial position or cash flow that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP. The non-GAAP measures included in this Quarterly Report on Form 10-Q, however, should be considered in addition to, and not as a substitute for or superior to the comparable measures prepared in accordance with GAAP.

We define non-GAAP net income (loss) as net loss before, China dissolution, stock-based compensation, amortization of acquisition-related intangibles, change in fair value of contingent consideration, and other non-cash or unusual charges. We believe non-GAAP net income (loss) assists management and investors in comparing our performance across reporting periods on a consistent basis by excluding these non-cash charges and other items that we do not believe are indicative of our core operating performance. In addition, we use non-GAAP net income (loss) as a factor to evaluate the effectiveness of our business strategies. A reconciliation of GAAP to non-GAAP net income (loss) is set forth in the table below (in thousands, except per share data):

	Three Months Ended September 30,						Six Months Ended September 30,
	2023			2022			2023			2022
Net loss	$	(2,485	)	$	(9,881	)	$	(7,883	)	$	(18,590	)
China dissolution		-			1,921			-			1,921
Stock-based compensation		1,111			1,019			2,468			2,052
Amortization of acquisition-related intangibles		538			688			1,082			1,400
Change in fair value of contingent consideration		850			(290	)		2,200			(120	)
Non-GAAP net income (loss)	$	14		$	(6,542	)	$	(2,133	)	$	(13,337	)

Non-GAAP net income (loss) per share - basic	$	0.00		$	(0.23	)	$	(0.07	)	$	(0.48	)
Weighted average shares outstanding - basic		28,828			27,867			28,545			27,714

We incurred non-GAAP net income of less than $0.1 million and a non-GAAP net loss of $2.1 million, or $0.00 and $0.07 per share, for the three and six months ended September 30, 2023, respectively, compared to non-GAAP net losses of $6.5 million and $13.3 million, or $0.23 and $0.48 per share, for the three and six months ended September 30, 2022, respectively. The improvement in the non-GAAP net loss for the three and six months ended September 30, 2023 was due to a lower operating loss driven by higher revenues and gross margins.

Liquidity and Capital Resources

We have experienced recurring operating losses and, as of September 30, 2023, had an accumulated deficit of $1,063.4 million.

Our cash requirements depend on numerous factors, including the successful completion of our product development activities, our ability to commercialize our REG and ship protection system solutions, the rate of customer and market adoption of our products, collecting receivables according to established terms, the continued availability of U.S. government funding during the product development phase of our superconductor-based products and whether Inox is successful in executing on Solar Energy Corporation of India Limited orders or in obtaining additional orders under the new central and state auction regime. We continue to closely monitor our expenses and, if required, expect to reduce our operating and capital spending to enhance liquidity.

In February 2021, we filed a shelf registration statement on Form S-3 that will expire in February 2024 (the “Form S-3”). The Form S-3 allows us to offer and sell from time-to-time up to $250 million of common stock, debt securities, warrants or units comprised of any combination of these securities. The Form S-3 is intended to provide us flexibility to conduct registered sales of our securities, subject to market conditions, in order to fund our future capital needs. The terms of any future offering under the Form S-3 will be established at the time of such offering and will be described in a prospectus supplement filed with the SEC prior to the completion of any such offering.

As of September 30, 2023, we had cash, cash equivalents and restricted cash of $24.0 million, compared to $25.7 million as of March 31, 2023, a decrease of $1.7 million. As of September 30, 2023, we had $2.6 million in cash, cash equivalents, and restricted cash in foreign bank accounts. Our cash, cash equivalents, and restricted cash are summarized as follows (in thousands):

	September 30, 2023		March 31, 2023
Cash and cash equivalents	$	22,818	$	23,360
Restricted cash		1,162		2,315
Total cash, cash equivalents, and restricted cash	$	23,980	$	25,675

For the six months ended September 30, 2023, net cash used in operating activities was $1.3 million, compared to $11.6 million for the six months ended September 30, 2022. The decrease in net cash used in operations was due primarily to decrease in prepaid expenses and other current asset as well as accounts receivable in the six months ended September 30, 2023 as compared to September 30, 2022. Cash flows from operating activities in the six months ended September 30, 2023 included a reimbursement of $3.0 million for the ERC receivable in prepaid expenses and other current assets at March 31, 2023.

For the six months ended September 30, 2023, net cash used in investing activities was $0.4 million, compared to $0.7 million for the six months ended September 30, 2022. The decrease in net cash used in investing activities was primarily due to a decrease in purchases of property, plant and equipment.

For the six months ended September 30, 2023 and 2022, respectively, net cash provided by financing activities remained consistent at $0.1 million.

As of September 30, 2023, we had $0.6 million of restricted cash included in long-term assets and $0.5 million of restricted cash included in current assets. At March 31, 2023, we had $0.6 million of restricted cash included in long-term assets and $1.7 million of restricted cash in current assets. These amounts included in restricted cash primarily represent collateral deposits to secure surety bonds and letters of credit for various customer contracts. These deposits are held in interest bearing accounts.

We are a party to many contractual obligations involving commitments to make payments to third parties. These obligations impact our short-term and long-term liquidity and capital resource needs. Certain contractual obligations are reflected on the consolidated balance sheet as of September 30, 2023, while others are considered future commitments. We have various contractual arrangements, under which we have committed to purchase certain minimum quantities of goods or services on an annual basis. For information regarding our other contractual obligations, refer to Note 13, "Contingent Consideration," Note 14, "Debt," Note 15, "Leases" and Note 16, "Commitments and Contingencies" to our condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q.

We believe we have sufficient available liquidity to fund our operations and capital expenditures for the next twelve months. In addition, we may seek to raise additional capital, which could be in the form of loans, convertible debt or equity, to fund our operating requirements and capital expenditures. Our liquidity is highly dependent on our ability to increase revenues, control our operating costs, and raise additional capital, if necessary. There can be no assurance that we will be able to raise additional capital on favorable terms or at all or execute on any other means of improving our liquidity as described above. Additionally, the impact of the COVID-19 pandemic or other sources of instability, including the ongoing wars between Russia and Ukraine or Israel and Hamas, instability of financial institutions and political instability in the United States, on the global financial markets may reduce our ability to raise additional capital, if necessary, which could negatively impact our liquidity. We also continue to closely monitor our expenses and, if required, we intend to reduce our operating and capital spending to enhance liquidity.

Legal Proceedings

From time to time, we are involved in legal and administrative proceedings and claims of various types. We record a liability in our condensed consolidated financial statements for these matters when a loss is known or considered probable and the amount can be reasonably estimated. We review these estimates each accounting period as additional information is known and adjust the loss provision when appropriate. If a matter is both probable to result in liability and the amounts of loss can be reasonably estimated, we estimate and disclose the possible loss or range of loss to the extent necessary to make the condensed consolidated financial statements not misleading. If the loss is not probable or cannot be reasonably estimated, a liability is not recorded in our condensed consolidated financial statements.

Recent Accounting Pronouncements

In June 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The amendments in ASU 2016-13 will provide more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. Following the release of ASU 2019-10 in November 2019, the effective date, as long as we remain a smaller reporting company, was annual reporting periods beginning after December 15, 2022. As of April 1, 2023, we have adopted ASU 2016-13 and noted no material impact on our condensed consolidated financial statements.

In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. The amendments in ASU 2021-08 will improve the accounting for acquired revenue contracts with customers in a business combination. Following the release of ASU 2021-08 in October 2021, the effective date was annual reporting periods beginning after December 15, 2022. As of April 1, 2023, we have adopted ASU 2021-08 and noted no material impact on our condensed consolidated financial statements.

We do not believe that, outside of those disclosed here, there are any other recently issued accounting pronouncements that will have a material impact on our condensed consolidated financial statements.

ITEM 3.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Not Applicable

ITEM 4.

CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

Our management, with the participation of our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of our disclosure controls and procedures as of September 30, 2023. The term “disclosure controls and procedures,” as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act, means controls and other procedures of a company that are designed to ensure that information required to be disclosed by a company in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by a company in the reports that it files or submits under the Exchange Act is accumulated and communicated to the Company’s management, including its principal executive and principal financial officers, as appropriate to allow timely decisions regarding required disclosure. Management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving their objectives and management necessarily applies its judgment in evaluating the cost-benefit relationship of possible controls and procedures. Based on the evaluation of our disclosure controls and procedures as of September 30, 2023, our Chief Executive Officer and Chief Financial Officer concluded that, as of such date, our disclosure controls and procedures were effective at the reasonable assurance level.

Changes in Internal Control over Financial Reporting

There were no changes to our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the quarter ended September 30, 2023 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II—OTHER INFORMATION

ITEM 1.

LEGAL PROCEEDINGS

None

ITEM 1A.

RISK FACTORS

There have been no material changes to the risk factors described in Part I, Item 1A of our Annual Report on Form 10-K for the fiscal year ended March 31, 2023, filed with the SEC on May 31, 2023.

ITEM 2.

UNREGISTERED SALES OF EQUITY SECURITIES, USE OF PROCEEDS, AND ISSUER PURCHASES OF EQUITY SECURITIES

The Company’s stock repurchase activity during the three months ended September 30, 2023 was as follows:

Month

Total Number
of Shares
Purchased^(a)

Average
Price Paid
per Share

Total Number of
Shares Purchased
as Part of Publicly
Announced
Plans or
Programs

Approximate
Dollar Value of Shares
that May Yet Be
Purchased under the
Plans or Programs
(in millions)

July 1, 2023 - July 31, 2023

—

August 1, 2023 - August 31, 2023

—

September 1, 2023 - September 30, 2023

—

Total

—

(a) During the three months ended September 30, 2023, we did not repurchase shares in connection with our stock-based compensation plans.

ITEM 3.

DEFAULTS UPON SENIOR SECURITIES

None

ITEM 4.

MINE SAFETY DISCLOSURES

Not Applicable

ITEM 5.

OTHER INFORMATION

None

ITEM 6.

EXHIBITS

EXHIBIT INDEX

Incorporated by Reference

Exhibit

Number

Exhibit Description

Form

File No.

Exhibit

Filing

Date

Filed/Furnished

Herewith

31.1

Chief Executive Officer—Certification pursuant to Rule 13a-14(a) or Rule 15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

31.2

Chief Financial Officer—Certification pursuant to Rule 13a-14(a) or Rule 15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

32.1

Chief Executive Officer—Certification pursuant to Rule13a-14(b) or Rule 15d-14(b) of the Securities Exchange Act of 1934 and 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

32.2

Chief Financial Officer—Certification pursuant to Rule 13a-14(b) or Rule 15d-14(b) of the Securities Exchange Act of 1934 and 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

101.INS

Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.

101.SCH

Inline XBRL Taxonomy Extension Schema Document.

101.CAL

Inline XBRL Taxonomy Calculation Linkbase Document.

101.DEF

Inline XBRL Definition Linkbase Document.

101.LAB

Inline XBRL Taxonomy Label Linkbase Document.

101.PRE

Inline XBRL Taxonomy Presentation Linkbase Document.

104

Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

_________________________

*	Filed herewith

**	Furnished herewith

Attached as Exhibits 101 to this report are the following formatted in inline XBRL (Extensible Business Reporting Language): (i) Condensed Consolidated Balance Sheets as of September 30, 2023 and March 31, 2023 (ii) Condensed Statements of Operations for the three and six months ended September 30, 2023 and 2022, (iii) Condensed Consolidated Statements of Comprehensive Loss for the three and six months ended September 30, 2023 and 2022, (iv) Condensed Consolidated Statements of Cash Flows for the six months ended September 30, 2023 and 2022, and (v) Notes to Condensed Consolidated Financial Statements.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

		AMERICAN SUPERCONDUCTOR CORPORATION

		By:	/s/ John W. Kosiba, Jr.
Date:	November 1, 2023		John W. Kosiba, Jr.
			Senior Vice President, Chief Financial Officer and Treasurer (Principal Financial and Accounting Officer)

Exhibit 31.1

AMERICAN SUPERCONDUCTOR CORPORATION

CERTIFICATIONS

I, Daniel P. McGahn, certify that:

1.	I have reviewed this Quarterly Report on Form 10-Q of American Superconductor Corporation;

2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.	The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	November 1, 2023	By:	/s/ Daniel P. McGahn
			Daniel P. McGahn
			Chief Executive Officer

Exhibit 31.2

AMERICAN SUPERCONDUCTOR CORPORATION

CERTIFICATIONS

I, John W. Kosiba, Jr., certify that:

1.	I have reviewed this Quarterly Report on Form 10-Q of American Superconductor Corporation;

2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

5.	The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	November 1, 2023	By:	/s/ John W. Kosiba, Jr.
			John W. Kosiba, Jr.
			Chief Financial Officer

Exhibit 32.1

AMERICAN SUPERCONDUCTOR CORPORATION

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q of American Superconductor Corporation (the “Company”) for the period ended September 30, 2023, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), the undersigned, Daniel P. McGahn, Chief Executive Officer of the Company, hereby certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:

(1)

The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)

The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date:	November 1, 2023	By:	/s/ Daniel P. McGahn
			Daniel P. McGahn
			Chief Executive Officer

Exhibit 32.2

AMERICAN SUPERCONDUCTOR CORPORATION

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q of American Superconductor Corporation (the “Company”) for the period ended September 30, 2023, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), the undersigned, John W. Kosiba, Jr., Chief Financial Officer of the Company, hereby certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:

(1)

The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)

The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date:	November 1, 2023	By:	/s/ John W. Kosiba, Jr.
			John W. Kosiba, Jr.
			Chief Financial Officer

Document And Entity Information - shares	6 Months Ended
Document And Entity Information - shares	Sep. 30, 2023	Oct. 27, 2023
Document Information [Line Items]
Entity Central Index Key	0000880807
Entity Registrant Name	AMERICAN SUPERCONDUCTOR CORP /DE/
Amendment Flag	false
Current Fiscal Year End Date	--03-31
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2023
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2023
Document Transition Report	false
Entity File Number	0-19672
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	04-2959321
Entity Address, Address Line One	114 East Main St.
Entity Address, City or Town	Ayer
Entity Address, State or Province	MA
Entity Address, Postal Zip Code	01432
City Area Code	978
Local Phone Number	842-3000
Title of 12(b) Security	Common Stock, $0.01 par value per share
Trading Symbol	AMSC
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		30,318,511

Unaudited Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2023	Mar. 31, 2023
Current assets:
Cash and cash equivalents	$ 22,818	$ 23,360
Accounts receivable, net	27,509	30,665
Inventory, net	47,835	36,986
Prepaid expenses and other current assets	5,398	13,429
Restricted cash	546	1,733
Total current assets	104,106	106,173
Property, plant and equipment, net	11,583	12,309
Intangibles, net	7,445	8,527
Right-of-use assets	2,493	2,857
Goodwill	43,471	43,471
Restricted cash	616	582
Deferred tax assets	1,083	1,114
Other assets	530	528
Total assets	171,327	175,561
Current liabilities:
Accounts payable and accrued expenses	28,949	38,383
Lease liability, current portion	696	808
Debt, current portion	57	75
Contingent consideration	3,470	1,270
Deferred revenue, current portion	52,093	43,572
Total current liabilities	85,265	84,108
Deferred revenue, long-term portion	6,953	7,188
Lease liability, long-term portion	1,929	2,184
Deferred tax liabilities	261	243
Debt, long-term portion	0	15
Other liabilities	25	26
Total liabilities	94,433	93,764
Stockholders' equity:
Common stock	307	299
Additional paid-in capital	1,142,023	1,139,113
Treasury stock	(3,639)	(3,639)
Accumulated other comprehensive income	1,633	1,571
Accumulated deficit	(1,063,430)	(1,055,547)
Total stockholders' equity	76,894	81,797
Total liabilities and stockholders' equity	$ 171,327	$ 175,561

Unaudited Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Revenues	$ 34,004	$ 27,680	$ 64,258	$ 50,360
Cost of revenues	25,418	25,710	49,390	46,169
Gross margin	8,586	1,970	14,868	4,191
Operating expenses:
Research and development	1,641	2,314	3,493	4,992
Selling, general and administrative	7,946	7,350	15,815	14,911
Amortization of acquisition-related intangibles	538	688	1,076	1,369
Change in fair value of contingent consideration	850	(290)	2,200	(120)
Restructuring	(20)	0	(14)	0
Total operating expenses	10,955	10,062	22,570	21,152
Operating loss	(2,369)	(8,092)	(7,702)	(16,961)
Interest income, net	194	45	368	70
China dissolution	0	(1,921)	0	(1,921)
Other income (expense), net	(204)	73	(321)	240
Loss before income tax expense (benefit)	(2,379)	(9,895)	(7,655)	(18,572)
Income tax expense (benefit)	106	(14)	228	18
Net loss	$ (2,485)	$ (9,881)	$ (7,883)	$ (18,590)
Net loss per common share
Basic (in dollars per share)	$ (0.09)	$ (0.35)	$ (0.28)	$ (0.67)
Diluted (in dollars per share)	$ (0.09)	$ (0.35)	$ (0.28)	$ (0.67)
Weighted average number of common shares outstanding
Basic (in shares)	28,828	27,867	28,545	27,714
Diluted (in shares)	28,828	27,867	28,545	27,714

Unaudited Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Net loss	$ (2,485)	$ (9,881)	$ (7,883)	$ (18,590)
Other comprehensive (loss) gain, net of tax:
China dissolution	0	1,921	0	1,921
Foreign currency translation gain	64	105	62	168
Total other comprehensive gain, net of tax	64	2,026	62	2,089
Comprehensive loss	$ (2,421)	$ (7,855)	$ (7,821)	$ (16,501)

Unaudited Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands	Common Stock [Member]	Additional Paid-in Capital [Member]	Treasury Stock, Common [Member]	AOCI Attributable to Parent [Member]	Retained Earnings [Member]	Total
Balance (in shares) at Mar. 31, 2022	28,920
Balance at Mar. 31, 2022	$ 289	$ 1,133,536	$ (3,639)	$ (291)	$ (1,020,506)	$ 109,389
Issuance of common stock - restricted shares (in shares)	9
Issuance of common stock - restricted shares	$ 0	0	0	0	0	0
Stock-based compensation expense		1,033				1,033
Issuance of stock for 401(k) match (in shares)	28
Issuance of stock for 401(k) match		138				138
Cumulative translation adjustment				63		63
Net loss					(8,710)	(8,710)
Issuance of common stock - restricted shares, net of forfeited shares (in shares)	(9)
Balance (in shares) at Jun. 30, 2022	28,939
Balance at Jun. 30, 2022	$ 289	1,134,707	(3,639)	(228)	(1,029,216)	101,913
Balance (in shares) at Mar. 31, 2022	28,920
Balance at Mar. 31, 2022	$ 289	1,133,536	(3,639)	(291)	(1,020,506)	109,389
Net loss						(18,590)
Balance (in shares) at Sep. 30, 2022	29,337
Balance at Sep. 30, 2022	$ 293	1,136,028	(3,639)	1,798	(1,039,097)	95,383
Balance (in shares) at Jun. 30, 2022	28,939
Balance at Jun. 30, 2022	$ 289	1,134,707	(3,639)	(228)	(1,029,216)	101,913
Issuance of common stock - restricted shares (in shares)	331
Issuance of common stock - restricted shares	$ 3	(3)	0	0	0	0
Stock-based compensation expense	$ 0	1,019	0	0	0	1,019
Issuance of stock for 401(k) match (in shares)	33
Issuance of stock for 401(k) match	$ 1	178	0	0	0	179
Cumulative translation adjustment	0	0	0	2,026	0	2,026
Net loss	$ 0	0	0	0	(9,881)	(9,881)
Issuance of common stock - ESPP (in shares)	34
Issuance of common stock - ESPP	$ 0	127	0	0	0	127
Issuance of common stock - restricted shares, net of forfeited shares (in shares)	(331)
Balance (in shares) at Sep. 30, 2022	29,337
Balance at Sep. 30, 2022	$ 293	1,136,028	(3,639)	1,798	(1,039,097)	95,383
Balance (in shares) at Mar. 31, 2023	29,937
Balance at Mar. 31, 2023	$ 299	1,139,113	(3,639)	1,571	(1,055,547)	81,797
Issuance of common stock - restricted shares (in shares)	699
Issuance of common stock - restricted shares	$ 7	(7)	0	0	0	0
Stock-based compensation expense		1,357				1,357
Issuance of stock for 401(k) match (in shares)	33
Issuance of stock for 401(k) match		163				164
Cumulative translation adjustment				(2)		(2)
Net loss					(5,398)	(5,398)
Issuance of common stock - restricted shares, net of forfeited shares (in shares)	(699)
Balance (in shares) at Jun. 30, 2023	30,669
Balance at Jun. 30, 2023	$ 307	1,140,626	(3,639)	1,569	(1,060,945)	77,918
Balance (in shares) at Mar. 31, 2023	29,937
Balance at Mar. 31, 2023	$ 299	1,139,113	(3,639)	1,571	(1,055,547)	81,797
Net loss						(7,883)
Balance (in shares) at Sep. 30, 2023	30,716
Balance at Sep. 30, 2023	$ 307	1,142,023	(3,639)	1,633	(1,063,430)	76,894
Balance (in shares) at Jun. 30, 2023	30,669
Balance at Jun. 30, 2023	$ 307	1,140,626	(3,639)	1,569	(1,060,945)	77,918
Issuance of common stock - restricted shares (in shares)	9
Issuance of common stock - restricted shares	$ 0	0	0	0	0	0
Stock-based compensation expense	$ 0	1,111	0	0	0	1,111
Issuance of stock for 401(k) match (in shares)	17
Issuance of stock for 401(k) match	$ 0	150	0	0	0	150
Cumulative translation adjustment	0	0	0	64	0	64
Net loss	$ 0	0	0	0	(2,485)	(2,485)
Issuance of common stock - ESPP (in shares)	21
Issuance of common stock - ESPP	$ 0	136	0	0	0	136
Issuance of common stock - restricted shares, net of forfeited shares (in shares)	(9)
Balance (in shares) at Sep. 30, 2023	30,716
Balance at Sep. 30, 2023	$ 307	$ 1,142,023	$ (3,639)	$ 1,633	$ (1,063,430)	$ 76,894

Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Cash flows from operating activities:
Net loss	$ (7,883)	$ (18,590)
Adjustments to reconcile net loss to net cash used in operations:
Depreciation and amortization	2,234	2,799
Stock-based compensation expense	2,468	2,052
Provision for excess and obsolete inventory	1,070	1,015
Deferred income taxes	0	63
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability	2,200	(120)
China dissolution	0	1,921
Other non-cash items	273	(137)
Changes in operating asset and liability accounts:
Accounts receivable	3,152	(92)
Inventory	(11,935)	(13,749)
Prepaid expenses and other assets	8,378	211
Accounts payable and accrued expenses	(9,763)	6,885
Deferred revenue	8,458	6,170
Net cash used in operating activities	(1,348)	(11,572)
Cash flows from investing activities:
Purchase of property, plant and equipment	(430)	(560)
Change in other assets	(10)	(99)
Net cash used in investing activities	(440)	(659)
Cash flows from financing activities:
Repayment of debt	(33)	(33)
Proceeds from exercise of employee stock options and ESPP	136	128
Net cash provided by financing activities	103	95
Effect of exchange rate changes on cash	(10)	4
Net decrease in cash, cash equivalents and restricted cash	(1,695)	(12,132)
Cash, cash equivalents and restricted cash at beginning of period	25,675	49,486
Cash, cash equivalents and restricted cash at end of period	23,980	37,354
Supplemental schedule of cash flow information:
Cash paid for income taxes, net of refunds	171	152
Non-cash investing and financing activities
Issuance of common stock to settle liabilities	$ 313	$ 317

Note 1 - Nature of the Business and Operations and Liquidity

6 Months Ended

Sep. 30, 2023

Notes to Financial Statements

Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]

AMERICAN SUPERCONDUCTOR CORPORATION

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

1. Nature of the Business and Operations and Liquidity

Nature of the Business and Operations

Liquidity

Note 2 - Revenue Recognition

6 Months Ended

Sep. 30, 2023

Notes to Financial Statements

Revenue from Contract with Customer [Text Block]

2. Revenue Recognition

The following tables disaggregate the Company’s revenue by product line and by shipment destination (in thousands):

	*Three Months Ended September 30, 2023*				*Six Months Ended September 30, 2023*
Product Line:	*Grid*		*Wind*		*Grid*		*Wind*
Equipment and systems	$	22,682	$	4,879	$	45,808	$	8,862
Services and technology development		5,833		610		8,443		1,145
Total	$	28,515	$	5,489	$	54,251	$	10,007

Region:
Americas	$	24,696	$	27	$	47,856	$	57
Asia Pacific		3,418		5,462		5,129		9,928
EMEA		401		—		1,266		22
Total	$	28,515	$	5,489	$	54,251	$	10,007

	*Three Months Ended September 30, 2022*				*Six Months Ended September 30, 2022*
Product Line:	*Grid*		*Wind*		*Grid*		*Wind*
Equipment and systems	$	24,128	$	1,330	$	42,204	$	3,302
Services and technology development		1,570		652		3,323		1,531
Total	$	25,698	$	1,982	$	45,527	$	4,833

Region:
Americas	$	18,021	$	-	$	34,923	$	-
Asia Pacific		6,178		1,912		8,855		4,763
EMEA		1,499		70		1,749		70
Total	$	25,698	$	1,982	$	45,527	$	4,833

	*Unbilled Accounts Receivable*			*Deferred Program Costs*			*Contract Liabilities*
Beginning balance as of March 31, 2023	$	9,958		$	2,136		$	50,760
Increases for costs incurred to fulfill performance obligations		—			2,110			—
Increase (decrease) due to customer billings		(13,981	)		—			34,284
Decrease due to cost recognition on completed performance obligations		—			(2,160	)		—
Increase (decrease) due to recognition of revenue based on transfer of control of performance obligations		10,351			—			(25,710	)
Other changes and FX impact		7			(11	)		(288	)
Ending balance as of September 30, 2023	$	6,335		$	2,075		$	59,046

	*Unbilled Accounts Receivable*			*Deferred Program Costs*			*Contract Liabilities*
Beginning balance as of March 31, 2022	$	6,492		$	858		$	30,034
Increases for costs incurred to fulfill performance obligations		—			782			—
Increase (decrease) due to customer billings		(7,322	)		—			33,141
Decrease due to cost recognition on completed performance obligations		—			(697	)		—
Increase (decrease) due to recognition of revenue based on transfer of control of performance obligations		7,342			—			(26,857	)
Other changes and FX impact		—			(47	)		(863	)
Ending balance as of September 30, 2022	$	6,512		$	896		$	35,455

The following table sets forth customers who represented 10% or more of the Company’s total revenues for the three and six months ended September 30, 2023 and 2022:

Three Months Ended

Six Months Ended

Reportable

September 30,

Segment

2023

2022

2023

2022

Inox Wind Limited

Wind

<10%

Fuji Bridex Pte Ltd

Grid

<10%

Gray Construction, Inc.

Grid

<10%

Ascend Performance Materials Ops LLC

Grid

<10%

Note 3 - Stock-based Compensation

6 Months Ended

Sep. 30, 2023

Notes to Financial Statements

Share-Based Payment Arrangement [Text Block]

3. Stock-Based Compensation

	*Three Months Ended September 30,*				*Six Months Ended September 30,*
	*2023*		*2022*		*2023*		*2022*
Cost of revenues	$	59	$	78	$	169	$	107
Research and development		156		177		311		355
Selling, general and administrative		896		764		1,988		1,590
Total	$	1,111	$	1,019	$	2,468	$	2,052

Expected volatility		71.40	%
Risk-free interest rate		3.10	%
Expected life (years)		6.14
Dividend yield	None

Note 4 - Computation of Net Loss Per Common Share

6 Months Ended

Sep. 30, 2023

Notes to Financial Statements

Earnings Per Share [Text Block]

4. Computation of Net Loss per Common Share

	*Three Months Ended September 30,*						*Six Months Ended September 30,*
	*2023*			*2022*			*2023*			*2022*
Numerator:
Net loss	$	(2,485	)	$	(9,881	)	$	(7,883	)	$	(18,590	)
Denominator:
Weighted-average shares of common stock outstanding		30,283			28,775			29,996			28,648
Weighted-average shares subject to repurchase		(1,455	)		(908	)		(1,451	)		(934	)
Shares used in per-share calculation ― basic		28,828			27,867			28,545			27,714
Shares used in per-share calculation ― diluted		28,828			27,867			28,545			27,714
Net loss per share ― basic	$	(0.09	)	$	(0.35	)	$	(0.28	)	$	(0.67	)
Net loss per share ― diluted	$	(0.09	)	$	(0.35	)	$	(0.28	)	$	(0.67	)

Note 5 - Goodwill and Other Intangibles

6 Months Ended

Sep. 30, 2023

Notes to Financial Statements

Goodwill and Intangible Assets Disclosure [Text Block]

5. Goodwill and Other Intangibles

Goodwill

There were no changes to goodwill during the six months ended September 30, 2023 or year ended March 31, 2023.

The Company did not identify any triggering events in the three and six months ended September 30, 2023 that would require interim impairment testing of goodwill.

Other Intangibles

Intangible assets at September 30, 2023 and March 31, 2023 consisted of the following (in thousands):

	*September 30, 2023*							*March 31, 2023*
	*Gross Amount*		*Accumulated Amortization*			*Net Book Value*		*Gross Amount*		*Accumulated Amortization*			*Net Book Value*		*Estimated Useful Life*
Backlog		681		(681	)		—		681		(675	)	$	6		2
Trade name and trademarks		1,800		—			1,800		1,800		—			1,800	Indefinite
Customer relationships		9,600		(5,815	)		3,785		9,600		(4,980	)		4,620		7
Core technology and know-how		5,970		(4,110	)		1,860		5,970		(3,869	)		2,101		5-10
Intangible assets	$	18,051	$	(10,606	)	$	7,445	$	18,051	$	(9,524	)	$	8,527

Expected future amortization expense related to intangible assets is as follows (in thousands):

Years ending March 31,	*Total*
2024		1,076
2025		1,648
2026		1,221
2027		1,085
2028		543
Thereafter		72
Total	$	5,645

The Company's intangible assets relate entirely to the Grid business segment operations in the United States.

Note 6 - Fair Value Measurements

6 Months Ended

Sep. 30, 2023

Notes to Financial Statements

Fair Value Disclosures [Text Block]

6. Fair Value Measurements

A valuation hierarchy for disclosure of the inputs to valuation used to measure fair value has been established. This hierarchy prioritizes the inputs into three broad levels as follows:

Level 1	-	Inputs are unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date.

Level 2	-	Inputs include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability, and inputs that are derived principally from or corroborated by observable market data by correlation or other means (market corroborated inputs).

Level 3	-	Unobservable inputs that reflect the Company’s assumptions that market participants would use in pricing the asset or liability. The Company develops these inputs based on the best information available, including its own data.

A financial asset’s or liability’s classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement.

Valuation Techniques

Cash Equivalents

Contingent Consideration

The following table provides the assets and liabilities carried at fair value on a recurring basis, measured as of September 30, 2023 and March 31, 2023 (in thousands):

	*Total Carrying Value*		*Quoted Prices in Active Markets (Level 1)*		*Significant Other Observable Inputs (Level 2)*		*Significant Unobservable Inputs (Level 3)*
September 30, 2023:
Assets:
Cash equivalents	$	5,157	$	5,157	$	—	$	—
Derivative liabilities:
Contingent consideration	$	3,470	$	—	$	—	$	3,470

	*Total Carrying Value*		*Quoted Prices in Active Markets (Level 1)*		*Significant Other Observable Inputs (Level 2)*		*Significant Unobservable Inputs (Level 3)*
March 31, 2023:
Assets:
Cash equivalents	$	7,913	$	7,913	$	—	$	—
Derivative liabilities:
Contingent consideration	$	1,270	$	—	$	—	$	1,270

The table below reflects the activity for the Company’s contingent consideration derivative liability measured at fair value on a recurring basis (in thousands):

	*Acquisition Contingent Consideration*
Balance at March 31, 2022	$	1,200
Change in fair value		70
Balance at March 31, 2023		1,270
Change in fair value		2,200
Balance at September 30, 2023	$	3,470

Note 7 - Accounts Receivable

6 Months Ended

Sep. 30, 2023

Notes to Financial Statements

Accounts Receivable [Text Block]

7. Accounts Receivable

Accounts receivable at September 30, 2023 and March 31, 2023 consisted of the following (in thousands):

	*September 30, 2023*		*March 31, 2023*
Accounts receivable (billed)	$	21,174	$	20,707
Accounts receivable (unbilled)		6,335		9,958
Accounts receivable, net	$	27,509	$	30,665

Note 8 - Inventory

6 Months Ended

Sep. 30, 2023

Notes to Financial Statements

Inventory Disclosure [Text Block]

8. Inventory

Inventory, net of reserves, at September 30, 2023 and March 31, 2023 consisted of the following (in thousands):

	*September 30, 2023*		*March 31, 2023*
Raw materials	$	19,337	$	16,654
Work-in-process		22,714		15,200
Finished goods		3,709		2,996
Deferred program costs		2,075		2,136
Net inventory	$	47,835	$	36,986

Note 9 - Prepaid and Other Current Assets

6 Months Ended

Sep. 30, 2023

Notes to Financial Statements

Prepaid and Other Current Assets [Text Block]

9. Prepaid and Other Current Assets

Note 10 - Property, Plant and Equipment

6 Months Ended

Sep. 30, 2023

Notes to Financial Statements

Property, Plant and Equipment Disclosure [Text Block]

10. Property, Plant and Equipment

The cost and accumulated depreciation of property, plant and equipment at September 30, 2023 and March 31, 2023 are as follows (in thousands):

	*September 30, 2023*			*March 31, 2023*
Land	$	980		$	980
Construction in progress - equipment		342			748
Buildings		5,416			5,416
Equipment and software		43,915			43,156
Finance lease - right of use asset		1			1
Furniture and fixtures		1,531			1,535
Leasehold improvements		6,812			6,815
Property, plant and equipment, gross		58,997			58,651
Less accumulated depreciation		(47,414	)		(46,342	)
Property, plant and equipment, net	$	11,583		$	12,309

Note 11 - Accounts Payable and Accrued Expenses

6 Months Ended

Sep. 30, 2023

Notes to Financial Statements

Accounts Payable and Accrued Liabilities Disclosure [Text Block]

11. Accounts Payable and Accrued Expenses

Accounts payable and accrued expenses at September 30, 2023 and March 31, 2023 consisted of the following (in thousands):

	*September 30, 2023*		*March 31, 2023*
Accounts payable	$	11,393	$	13,935
Accrued inventories in-transit		1,123		2,267
Accrued other miscellaneous expenses		4,237		3,870
Accrued contract loss		2,584		3,464
Advanced deposits		1,156		5,653
Accrued compensation		6,041		5,430
Income taxes payable		297		409
Accrued product warranty		1,892		2,638
Accrued restructuring		226		717
Total	$	28,949	$	38,383

Product warranty activity was as follows (in thousands):

	*Three Months Ended September 30,*						*Six Months Ended September 30,*
	*2023*			*2022*			*2023*			*2022*
Balance at beginning of period	$	1,926		$	1,942		$	2,638		$	2,066
Provisions for warranties during the period		644			479			852			656
Settlements during the period		(678	)		(368	)		(1,598	)		(669	)
Balance at end of period	$	1,892		$	2,053		$	1,892		$	2,053

Note 12 - Income Taxes

6 Months Ended

Sep. 30, 2023

Notes to Financial Statements

Income Tax Disclosure [Text Block]

12. Income Taxes

Note 13 - Contingent Consideration

6 Months Ended

Sep. 30, 2023

Notes to Financial Statements

Business Combination, Contingent Consideration [Text Block]

13. Contingent Consideration

Acquisition of NEPSI

Contingent Consideration

Following is a summary of the key assumptions used in a Monte Carlo simulation to calculate the fair value of the contingent consideration related to the NEPSI Acquisition:

		*September 30,*			*June 30,*
Fiscal Year 2023		*2023*			*2023*
Revenue risk premium		5.30	%		5.20	%
Revenue volatility		27.5	%		23	%
Stock Price	$	7.55		$	6.26
Payment delay (days)		80			80
Fair value (millions)	$	3.5		$	2.6

	*March 31,*			*December 31,*			*September 30,*			*June 30,*			*March 31,*
Fiscal Year 2022	*2023*			*2022*			*2022*			*2022*			*2022*
Revenue risk premium		5.30	%		5.30	%		5.20	%		6.60	%		6.50	%
Revenue volatility		25	%		25	%		25	%		30	%		33	%
Stock Price	$	4.91		$	3.68		$	4.38		$	5.18		$	7.61
Payment delay (days)		80			80			80			80			80
Fair value (millions)	$	1.3		$	0.9		$	1.1		$	1.4		$	1.2

Note 14 - Debt

6 Months Ended

Sep. 30, 2023

Notes to Financial Statements

Debt Disclosure [Text Block]

14. Debt

Note 15 - Leases

6 Months Ended

Sep. 30, 2023

Notes to Financial Statements

Lessee, Operating Leases [Text Block]

15. Leases

Operating Leases

Finance Leases

Supplemental balance sheet information related to leases at September 30, 2023, and March 31, 2023 are as follows (in thousands):

	*September 30, 2023*			*March 31, 2023*
Leases:
Right-of-use assets - Financing	$	-			1
Right-of-use assets - Operating		2,493			2,857
Total right-of-use assets		2,493			2,858

Lease liabilities - ST Financing	$	-			1
Lease liabilities - ST Operating		696			807
Lease liabilities - LT Operating		1,929			2,184
Total lease liabilities	$	2,625			2,992

Weighted-average remaining lease term		3.7 years			3.95 years
Weighted-average discount rate		8.48	%		6.46	%

	*Three Months Ended*		*Six Months Ended*
	*September 30, 2023*		*September 30, 2023*
Operating Leases:
Operating lease costs - fixed	$	255	$	514
Operating lease costs - variable		40		79
Short-term lease costs		37		74
Total lease costs	$	332	$	667

	*Three Months Ended*		*Six Months Ended*
	*September 30, 2022*		*September 30, 2022*
Operating Leases:
Operating lease costs - fixed	$	262	$	504
Operating lease costs - variable		41		76
Short-term lease costs		30		61
Total lease costs	$	333	$	641

The Company’s estimated minimum future lease obligations under the Company's leases are as follows (in thousands):

	*Leases*
Year ending March 31,
2024	$	472
2025		803
2026		755
2027		614
2028		392
Thereafter		15
Total minimum lease payments		3,051
Less: interest		(426	)
Present value of lease liabilities	$	2,625

Note 16 - Commitments and Contingencies

6 Months Ended

Sep. 30, 2023

Notes to Financial Statements

Commitments and Contingencies Disclosure [Text Block]

16. Commitments and Contingencies

Legal Contingencies

Other

Note 17 - Restructuring

6 Months Ended

Sep. 30, 2023

Notes to Financial Statements

Restructuring and Related Activities Disclosure [Text Block]

17. Restructuring

The following table presents restructuring charges and cash payments during the six months ended September 30, 2023 and year ended March 31, 2023 (in thousands):

	*Severance pay*
	*and benefits*
Accrued restructuring balance at April 1, 2023	$	717
Charges to operations		(14	)
Cash payments		(477	)
Accrued restructuring balance at September 30, 2023	$	226

	Severance pay
	and benefits
Accrued restructuring balance at April 1, 2022	$	—
Charges to operations		1,048
Cash payments		(331	)
Accrued restructuring balance at March 31, 2023	$	717

Note 18 - Business Segments

6 Months Ended

Sep. 30, 2023

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

18. Business Segments

The operating results for the two business segments are as follows (in thousands):

	*Three Months Ended September 30,*				*Six Months Ended September 30,*
	*2023*		*2022*		*2023*		*2022*
Revenues:
Grid	$	28,515	$	25,698	$	54,251	$	45,527
Wind		5,489		1,982		10,007		4,833
Total	$	34,004	$	27,680	$	64,258	$	50,360

	*Three Months Ended September 30,*						*Six Months Ended September 30,*
	*2023*			*2022*			*2023*			*2022*
Operating income (loss):
Grid	$	(679	)	$	(6,495	)	$	(2,649	)	$	(13,776	)
Wind		252			(868	)		(398	)		(1,254	)
Unallocated corporate expenses		(1,942	)		(729	)		(4,655	)		(1,931	)
Total	$	(2,369	)	$	(8,092	)	$	(7,702	)	$	(16,961	)

Total assets for the two business segments as of September 30, 2023 and March 31, 2023, are as follows (in thousands):

	*September 30, 2023*		*March 31, 2023*
Grid	$	137,607	$	135,296
Wind		9,750		14,361
Corporate assets		23,970		25,904
Total	$	171,327	$	175,561

Note 19 - Recent Accounting Pronouncements

6 Months Ended

Sep. 30, 2023

Notes to Financial Statements

Accounting Standards Update and Change in Accounting Principle [Text Block]

19. Recent Accounting Pronouncements

Note 20 - Subsequent Events

6 Months Ended

Sep. 30, 2023

Notes to Financial Statements

Subsequent Events [Text Block]

20. Subsequent Events

The Company has performed an evaluation of subsequent events through the time of filing this Quarterly Report on Form 10-Q with the SEC and has determined that there are no such events to report.

Note 2 - Revenue Recognition (Tables)

6 Months Ended

Sep. 30, 2023

Notes Tables

Disaggregation of Revenue [Table Text Block]

	*Three Months Ended September 30, 2023*				*Six Months Ended September 30, 2023*
Product Line:	*Grid*		*Wind*		*Grid*		*Wind*
Equipment and systems	$	22,682	$	4,879	$	45,808	$	8,862
Services and technology development		5,833		610		8,443		1,145
Total	$	28,515	$	5,489	$	54,251	$	10,007

Region:
Americas	$	24,696	$	27	$	47,856	$	57
Asia Pacific		3,418		5,462		5,129		9,928
EMEA		401		—		1,266		22
Total	$	28,515	$	5,489	$	54,251	$	10,007

	*Three Months Ended September 30, 2022*				*Six Months Ended September 30, 2022*
Product Line:	*Grid*		*Wind*		*Grid*		*Wind*
Equipment and systems	$	24,128	$	1,330	$	42,204	$	3,302
Services and technology development		1,570		652		3,323		1,531
Total	$	25,698	$	1,982	$	45,527	$	4,833

Region:
Americas	$	18,021	$	-	$	34,923	$	-
Asia Pacific		6,178		1,912		8,855		4,763
EMEA		1,499		70		1,749		70
Total	$	25,698	$	1,982	$	45,527	$	4,833

Contract with Customer, Contract Asset, Contract Liability, and Receivable [Table Text Block]

	*Unbilled Accounts Receivable*			*Deferred Program Costs*			*Contract Liabilities*
Beginning balance as of March 31, 2023	$	9,958		$	2,136		$	50,760
Increases for costs incurred to fulfill performance obligations		—			2,110			—
Increase (decrease) due to customer billings		(13,981	)		—			34,284
Decrease due to cost recognition on completed performance obligations		—			(2,160	)		—
Increase (decrease) due to recognition of revenue based on transfer of control of performance obligations		10,351			—			(25,710	)
Other changes and FX impact		7			(11	)		(288	)
Ending balance as of September 30, 2023	$	6,335		$	2,075		$	59,046

	*Unbilled Accounts Receivable*			*Deferred Program Costs*			*Contract Liabilities*
Beginning balance as of March 31, 2022	$	6,492		$	858		$	30,034
Increases for costs incurred to fulfill performance obligations		—			782			—
Increase (decrease) due to customer billings		(7,322	)		—			33,141
Decrease due to cost recognition on completed performance obligations		—			(697	)		—
Increase (decrease) due to recognition of revenue based on transfer of control of performance obligations		7,342			—			(26,857	)
Other changes and FX impact		—			(47	)		(863	)
Ending balance as of September 30, 2022	$	6,512		$	896		$	35,455

Schedule of Revenue by Major Customers by Reporting Segments [Table Text Block]

Three Months Ended

Six Months Ended

Reportable

September 30,

Segment

2023

2022

2023

2022

Inox Wind Limited

Wind

<10%

Fuji Bridex Pte Ltd

Grid

<10%

Gray Construction, Inc.

Grid

<10%

Ascend Performance Materials Ops LLC

Grid

<10%

Note 3 - Stock-based Compensation (Tables)

6 Months Ended

Sep. 30, 2023

Notes Tables

Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Table Text Block]

	*Three Months Ended September 30,*				*Six Months Ended September 30,*
	*2023*		*2022*		*2023*		*2022*
Cost of revenues	$	59	$	78	$	169	$	107
Research and development		156		177		311		355
Selling, general and administrative		896		764		1,988		1,590
Total	$	1,111	$	1,019	$	2,468	$	2,052

Disclosure of Share-Based Compensation Arrangements by Share-Based Payment Award [Table Text Block]

Expected volatility		71.40	%
Risk-free interest rate		3.10	%
Expected life (years)		6.14
Dividend yield	None

Note 4 - Computation of Net Loss Per Common Share (Tables)

6 Months Ended

Sep. 30, 2023

Notes Tables

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

	*Three Months Ended September 30,*						*Six Months Ended September 30,*
	*2023*			*2022*			*2023*			*2022*
Numerator:
Net loss	$	(2,485	)	$	(9,881	)	$	(7,883	)	$	(18,590	)
Denominator:
Weighted-average shares of common stock outstanding		30,283			28,775			29,996			28,648
Weighted-average shares subject to repurchase		(1,455	)		(908	)		(1,451	)		(934	)
Shares used in per-share calculation ― basic		28,828			27,867			28,545			27,714
Shares used in per-share calculation ― diluted		28,828			27,867			28,545			27,714
Net loss per share ― basic	$	(0.09	)	$	(0.35	)	$	(0.28	)	$	(0.67	)
Net loss per share ― diluted	$	(0.09	)	$	(0.35	)	$	(0.28	)	$	(0.67	)

Note 5 - Goodwill and Other Intangibles (Tables)

6 Months Ended

Sep. 30, 2023

Notes Tables

Schedule of Finite-Lived Intangible Assets [Table Text Block]

	*September 30, 2023*							*March 31, 2023*
	*Gross Amount*		*Accumulated Amortization*			*Net Book Value*		*Gross Amount*		*Accumulated Amortization*			*Net Book Value*		*Estimated Useful Life*
Backlog		681		(681	)		—		681		(675	)	$	6		2
Trade name and trademarks		1,800		—			1,800		1,800		—			1,800	Indefinite
Customer relationships		9,600		(5,815	)		3,785		9,600		(4,980	)		4,620		7
Core technology and know-how		5,970		(4,110	)		1,860		5,970		(3,869	)		2,101		5-10
Intangible assets	$	18,051	$	(10,606	)	$	7,445	$	18,051	$	(9,524	)	$	8,527

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block]

Years ending March 31,	*Total*
2024		1,076
2025		1,648
2026		1,221
2027		1,085
2028		543
Thereafter		72
Total	$	5,645

Note 6 - Fair Value Measurements (Tables)

6 Months Ended

Sep. 30, 2023

Notes Tables

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]

	*Total Carrying Value*		*Quoted Prices in Active Markets (Level 1)*		*Significant Other Observable Inputs (Level 2)*		*Significant Unobservable Inputs (Level 3)*
September 30, 2023:
Assets:
Cash equivalents	$	5,157	$	5,157	$	—	$	—
Derivative liabilities:
Contingent consideration	$	3,470	$	—	$	—	$	3,470

	*Total Carrying Value*		*Quoted Prices in Active Markets (Level 1)*		*Significant Other Observable Inputs (Level 2)*		*Significant Unobservable Inputs (Level 3)*
March 31, 2023:
Assets:
Cash equivalents	$	7,913	$	7,913	$	—	$	—
Derivative liabilities:
Contingent consideration	$	1,270	$	—	$	—	$	1,270

Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block]

	*Acquisition Contingent Consideration*
Balance at March 31, 2022	$	1,200
Change in fair value		70
Balance at March 31, 2023		1,270
Change in fair value		2,200
Balance at September 30, 2023	$	3,470

Note 7 - Accounts Receivable (Tables)

6 Months Ended

Sep. 30, 2023

Notes Tables

Accounts Receivable [Table Text Block]

	*September 30, 2023*		*March 31, 2023*
Accounts receivable (billed)	$	21,174	$	20,707
Accounts receivable (unbilled)		6,335		9,958
Accounts receivable, net	$	27,509	$	30,665

Note 8 - Inventory (Tables)

6 Months Ended

Sep. 30, 2023

Notes Tables

Schedule of Inventory, Current [Table Text Block]

	*September 30, 2023*		*March 31, 2023*
Raw materials	$	19,337	$	16,654
Work-in-process		22,714		15,200
Finished goods		3,709		2,996
Deferred program costs		2,075		2,136
Net inventory	$	47,835	$	36,986

Note 10 - Property, Plant and Equipment (Tables)

6 Months Ended

Sep. 30, 2023

Notes Tables

Property, Plant and Equipment [Table Text Block]

	*September 30, 2023*			*March 31, 2023*
Land	$	980		$	980
Construction in progress - equipment		342			748
Buildings		5,416			5,416
Equipment and software		43,915			43,156
Finance lease - right of use asset		1			1
Furniture and fixtures		1,531			1,535
Leasehold improvements		6,812			6,815
Property, plant and equipment, gross		58,997			58,651
Less accumulated depreciation		(47,414	)		(46,342	)
Property, plant and equipment, net	$	11,583		$	12,309

Note 11 - Accounts Payable and Accrued Expenses (Tables)

6 Months Ended

Sep. 30, 2023

Notes Tables

Schedule of Accounts Payable and Accrued Liabilities [Table Text Block]

	*September 30, 2023*		*March 31, 2023*
Accounts payable	$	11,393	$	13,935
Accrued inventories in-transit		1,123		2,267
Accrued other miscellaneous expenses		4,237		3,870
Accrued contract loss		2,584		3,464
Advanced deposits		1,156		5,653
Accrued compensation		6,041		5,430
Income taxes payable		297		409
Accrued product warranty		1,892		2,638
Accrued restructuring		226		717
Total	$	28,949	$	38,383

Schedule of Product Warranty Liability [Table Text Block]

	*Three Months Ended September 30,*						*Six Months Ended September 30,*
	*2023*			*2022*			*2023*			*2022*
Balance at beginning of period	$	1,926		$	1,942		$	2,638		$	2,066
Provisions for warranties during the period		644			479			852			656
Settlements during the period		(678	)		(368	)		(1,598	)		(669	)
Balance at end of period	$	1,892		$	2,053		$	1,892		$	2,053

Note 13 - Contingent Consideration (Tables)

6 Months Ended

Sep. 30, 2023

Notes Tables

Fair Value Measurement Inputs and Valuation Techniques [Table Text Block]

		*September 30,*			*June 30,*
Fiscal Year 2023		*2023*			*2023*
Revenue risk premium		5.30	%		5.20	%
Revenue volatility		27.5	%		23	%
Stock Price	$	7.55		$	6.26
Payment delay (days)		80			80
Fair value (millions)	$	3.5		$	2.6

	*March 31,*			*December 31,*			*September 30,*			*June 30,*			*March 31,*
Fiscal Year 2022	*2023*			*2022*			*2022*			*2022*			*2022*
Revenue risk premium		5.30	%		5.30	%		5.20	%		6.60	%		6.50	%
Revenue volatility		25	%		25	%		25	%		30	%		33	%
Stock Price	$	4.91		$	3.68		$	4.38		$	5.18		$	7.61
Payment delay (days)		80			80			80			80			80
Fair value (millions)	$	1.3		$	0.9		$	1.1		$	1.4		$	1.2

Note 15 - Leases (Tables)

6 Months Ended

Sep. 30, 2023

Notes Tables

Assets And Liabilities Lessee [Table Text Block]

	*September 30, 2023*			*March 31, 2023*
Leases:
Right-of-use assets - Financing	$	-			1
Right-of-use assets - Operating		2,493			2,857
Total right-of-use assets		2,493			2,858

Lease liabilities - ST Financing	$	-			1
Lease liabilities - ST Operating		696			807
Lease liabilities - LT Operating		1,929			2,184
Total lease liabilities	$	2,625			2,992

Weighted-average remaining lease term		3.7 years			3.95 years
Weighted-average discount rate		8.48	%		6.46	%

Lease, Cost [Table Text Block]

	*Three Months Ended*		*Six Months Ended*
	*September 30, 2023*		*September 30, 2023*
Operating Leases:
Operating lease costs - fixed	$	255	$	514
Operating lease costs - variable		40		79
Short-term lease costs		37		74
Total lease costs	$	332	$	667

	*Three Months Ended*		*Six Months Ended*
	*September 30, 2022*		*September 30, 2022*
Operating Leases:
Operating lease costs - fixed	$	262	$	504
Operating lease costs - variable		41		76
Short-term lease costs		30		61
Total lease costs	$	333	$	641

Lessee, Operating Lease, Liability, to be Paid, Maturity [Table Text Block]

	*Leases*
Year ending March 31,
2024	$	472
2025		803
2026		755
2027		614
2028		392
Thereafter		15
Total minimum lease payments		3,051
Less: interest		(426	)
Present value of lease liabilities	$	2,625

Note 17 - Restructuring (Tables)

6 Months Ended

Sep. 30, 2023

Notes Tables

Restructuring and Related Costs [Table Text Block]

	*Severance pay*
	*and benefits*
Accrued restructuring balance at April 1, 2023	$	717
Charges to operations		(14	)
Cash payments		(477	)
Accrued restructuring balance at September 30, 2023	$	226

	Severance pay
	and benefits
Accrued restructuring balance at April 1, 2022	$	—
Charges to operations		1,048
Cash payments		(331	)
Accrued restructuring balance at March 31, 2023	$	717

Note 18 - Business Segments (Tables)

6 Months Ended

Sep. 30, 2023

Notes Tables

Schedule of Segment Reporting Information, by Segment [Table Text Block]

	*Three Months Ended September 30,*				*Six Months Ended September 30,*
	*2023*		*2022*		*2023*		*2022*
Revenues:
Grid	$	28,515	$	25,698	$	54,251	$	45,527
Wind		5,489		1,982		10,007		4,833
Total	$	34,004	$	27,680	$	64,258	$	50,360

	*Three Months Ended September 30,*						*Six Months Ended September 30,*
	*2023*			*2022*			*2023*			*2022*
Operating income (loss):
Grid	$	(679	)	$	(6,495	)	$	(2,649	)	$	(13,776	)
Wind		252			(868	)		(398	)		(1,254	)
Unallocated corporate expenses		(1,942	)		(729	)		(4,655	)		(1,931	)
Total	$	(2,369	)	$	(8,092	)	$	(7,702	)	$	(16,961	)

Reconciliation of Assets from Segment to Consolidated [Table Text Block]

	*September 30, 2023*		*March 31, 2023*
Grid	$	137,607	$	135,296
Wind		9,750		14,361
Corporate assets		23,970		25,904
Total	$	171,327	$	175,561

Note 1 - Nature of the Business and Operations and Liquidity (Details Textual) - USD ($) $ in Thousands	6 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Mar. 31, 2023	Feb. 28, 2021
Retained Earnings (Accumulated Deficit)	$ (1,063,430)		$ (1,055,547)
Cash, Cash Equivalents, and Marketable Securities	22,800
Net Cash Provided by (Used in) Operating Activities	$ (1,348)	$ (11,572)
Restructuring and Related Cost, Number of Positions Eliminated, Period Percent	5.00%
Restructuring and Related Cost, Expected Cost	$ 1,000
Payments for Restructuring	800
Restructuring and Related Cost, Expected Annual Savings	$ 5,000
Inox Wind Limited [Member]
Supply Commitment, Default, Letters of Credit to be Received				$ 250,000

Note 2 - Revenue Recognition 1 (Details Textual) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Revenue, Performance Obligation Satisfied, Revenue Recognized, Percentage	79.00%	83.00%	78.00%	77.00%
Contract With Customer Loss Accrual		$ 1.0		$ 1.2
Contract With Customer Loss Accrual Reduction	$ 0.9
Minimum [Member]
Warranty Period (Year)			1 year
Contract with Customer, Payment Term (Day)			30 days
Maximum [Member]
Warranty Period (Year)			3 years
Extended Service Warranty, Term (Year)			4 years
Contract with Customer, Payment Term (Day)			60 days

Note 2 - Revenue Recognition 2 (Details Textual) $ in Millions	Sep. 30, 2023 USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-10-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period (Month)	12 months
Revenue, Remaining Performance Obligation, Amount	$ 128.3
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01
Revenue, Remaining Performance Obligation, Amount	$ 43.2
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 \| Minimum [Member]
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period (Month)	13 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 \| Maximum [Member]
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period (Month)	60 months

Note 2 - Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Revenues	$ 34,004	$ 27,680	$ 64,258	$ 50,360
Grid [Member]
Revenues	28,515	25,698	54,251	45,527
Grid [Member] \| Americas [Member]
Revenues	24,696	18,021	47,856	34,923
Grid [Member] \| Asia Pacific [Member]
Revenues	3,418	6,178	5,129	8,855
Grid [Member] \| EMEA [Member]
Revenues	401	1,499	1,266	1,749
Wind [Member]
Revenues	5,489	1,982	10,007	4,833
Wind [Member] \| Americas [Member]
Revenues	27	0	57	0
Wind [Member] \| Asia Pacific [Member]
Revenues	5,462	1,912	9,928	4,763
Wind [Member] \| EMEA [Member]
Revenues	0	70	22	70
Equipment and Systems [Member] \| Grid [Member]
Revenues	22,682	24,128	45,808	42,204
Equipment and Systems [Member] \| Wind [Member]
Revenues	4,879	1,330	8,862	3,302
Services and Technology Development [Member] \| Grid [Member]
Revenues	5,833	1,570	8,443	3,323
Services and Technology Development [Member] \| Wind [Member]
Revenues	$ 610	$ 652	$ 1,145	$ 1,531

Note 2 - Revenue Recognition - Contract Assets and Liabilities (Details) - USD ($) $ in Thousands	6 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Unbilled AR, beginning balance	$ 9,958	$ 6,492
Deferred Program Costs, beginning balance	2,136	858
Contract Liabilities, beginning balance	50,760	30,034
Deferred Program Costs, increases for costs incurred to fulfill performance obligations	2,110	782
Unbilled AR, increase (decrease) due to customer billings	(13,981)	(7,322)
Increase (decrease) due to customer billings	34,284	33,141
Deferred Program Costs, decrease due to cost recognition on completed performance obligations	(2,160)	(697)
Unbilled AR, increase (decrease) due to recognition of revenue based on transfer of control of performance obligations	10,351	7,342
Increase (decrease) due to recognition of revenue based on transfer of control of performance obligations	(25,710)	(26,857)
Unbilled AR, other changes and FX impact	7	0
Deferred Program Costs, other changes and FX impact	(11)	(47)
Other changes and FX impact	(288)	(863)
Unbilled AR, ending balance	6,335	6,512
Deferred Program Costs, ending balance	2,075	896
Contract Liabilities, ending balance	$ 59,046	$ 35,455

Note 2 - Revenue Recognition - Revenues by Major Customers (Details) - Revenue Benchmark [Member] - Customer Concentration Risk [Member]	3 Months Ended		6 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Inox Wind Limited [Member] \| Wind [Member]
Concentration of risk, revenue	12.00%		12.00%
Fuji Bridex Pte Ltd [Member] \| Grid [Member]
Concentration of risk, revenue		17.00%		13.00%
Gray Construction, Inc. [Member] \| Grid [Member]
Concentration of risk, revenue	11.00%
Ascend Performance Materials Ops LLC [Member] \| Grid [Member]
Concentration of risk, revenue		12.00%

Note 3 - Stock-based Compensation (Details Textual) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Restricted Stock [Member]
Shares Issued, Shares, Share-Based Payment Arrangement, after Forfeiture (in shares)	9,000	338,500	681,500	338,500
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount	$ 6.8		$ 6.8
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Year)			2 years
Restricted Stock [Member] \| Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year)			2 years
Immediately Vested Common Stock [Member]
Shares Issued, Shares, Share-Based Payment Arrangement, after Forfeiture (in shares)	0	0	53,675	25,806
Share-Based Payment Arrangement, Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year)				2 years
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount	$ 0.1		$ 0.1
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Year)			8 months 12 days
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Gross (in shares)	0	0	0	20,564

Note 3 - Stock-based Compensation - Stock-based Compensation Expense by Financial Statement Line Item (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Total stock-based compensation expense	$ 1,111	$ 1,019	$ 2,468	$ 2,052
Cost of Sales [Member]
Total stock-based compensation expense	59	78	169	107
Research and Development Expense [Member]
Total stock-based compensation expense	156	177	311	355
Selling, General and Administrative Expenses [Member]
Total stock-based compensation expense	$ 896	$ 764	$ 1,988	$ 1,590

Note 3 - Stock-based Compensation - Weighted Average Assumptions (Details)	6 Months Ended
	Sep. 30, 2023
Expected volatility	71.40%
Risk-free interest rate	3.10%
Expected life (years) (Year)	6 years 1 month 20 days

Note 4 - Computation of Net Loss Per Common Share (Details Textual) - shares shares in Millions	3 Months Ended		6 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares)	1.0	1.1	1.0	1.1
Shares Tied to Derivative Liability [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares)	1.0	1.0	1.0	1.0
Share-Based Payment Arrangement, Option [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares)	0.1	0.1	0.1	0.1

Note 4 - Computation of Net Loss Per Common Share - Reconciliation of Numerators and Denominators of EPS Calculation (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended				6 Months Ended
	Sep. 30, 2023	Jun. 30, 2023	Sep. 30, 2022	Jun. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Net loss	$ (2,485)	$ (5,398)	$ (9,881)	$ (8,710)	$ (7,883)	$ (18,590)
Weighted-average shares of common stock outstanding (in shares)	30,283		28,775		29,996	28,648
Weighted-average shares subject to repurchase (in shares)	(1,455)		(908)		(1,451)	(934)
Shares used in per-share calculation ? basic (in shares)	28,828		27,867		28,545	27,714
Shares used in per-share calculation ? diluted (in shares)	28,828		27,867		28,545	27,714
Net loss per share ? basic (in dollars per share)	$ (0.09)		$ (0.35)		$ (0.28)	$ (0.67)
Net loss per share ? diluted (in dollars per share)	$ (0.09)		$ (0.35)		$ (0.28)	$ (0.67)

Note 5 - Goodwill and Other Intangibles (Details Textual) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Goodwill, Impairment Loss	$ 0		$ 0
Customer Relationship, Core Technology and Know-how [Member]
Amortization of Intangible Assets	500	$ 700	1,100	$ 1,400
Backlog [Member]
Amortization of Intangible Assets	$ 0	$ 0	$ 100	$ 100

Note 5 - Goodwill and Other Intangibles - Intangible Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Mar. 31, 2023
Accumulated Amortization	$ (10,606)	$ (9,524)
Net Book Value	5,645
Intangible assets, gross amount	18,051	18,051
Intangible assets, net	7,445	8,527
Trade Names [Member]
Trade name and trademarks	1,800	1,800
Backlog [Member]
Gross Amount	681	681
Accumulated Amortization	(681)	(675)
Net Book Value	$ 0	6
Estimated Useful Life (Year)	2 years
Customer Relationships [Member]
Gross Amount	$ 9,600	9,600
Accumulated Amortization	(5,815)	(4,980)
Net Book Value	$ 3,785	4,620
Estimated Useful Life (Year)	7 years
Core Technology and Know-how [Member]
Gross Amount	$ 5,970	5,970
Accumulated Amortization	(4,110)	(3,869)
Net Book Value	$ 1,860	$ 2,101
Core Technology and Know-how [Member] \| Minimum [Member]
Estimated Useful Life (Year)	5 years
Core Technology and Know-how [Member] \| Maximum [Member]
Estimated Useful Life (Year)	10 years

Note 5 - Goodwill and Other Intangibles - Expected Future Amortization Expense (Details) $ in Thousands	Sep. 30, 2023 USD ($)
2024	$ 1,076
2025	1,648
2026	1,221
2027	1,085
2028	543
Thereafter	72
Total	$ 5,645

Note 6 - Fair Value Measurements (Details Textual) - shares	Sep. 30, 2023	Oct. 01, 2020
Northeast Power Systems, Inc (NEPSI) [Member]
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High, Number of Shares (in shares)	1,000,000	1,000,000

Note 6 - Fair Value Measurements - Assets and Liabilities Carried at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022
Fair value (millions)	$ 3,500	$ 2,600	$ 1,300	$ 900	$ 1,100	$ 1,400	$ 1,200
Fair Value, Recurring [Member] \| Reported Value Measurement [Member]
Cash equivalents	5,157		7,913
Fair value (millions)	3,470		1,270
Fair Value, Recurring [Member] \| Reported Value Measurement [Member] \| Fair Value, Inputs, Level 1 [Member]
Cash equivalents	5,157		7,913
Fair value (millions)	0		0
Fair Value, Recurring [Member] \| Reported Value Measurement [Member] \| Fair Value, Inputs, Level 2 [Member]
Cash equivalents	0		0
Fair value (millions)	0		0
Fair Value, Recurring [Member] \| Reported Value Measurement [Member] \| Fair Value, Inputs, Level 3 [Member]
Cash equivalents	0		0
Fair value (millions)	$ 3,470		$ 1,270

Note 6 - Fair Value Measurements - Derivative Liability Measured at Fair value (Details) - Derivative Financial Instruments, Liabilities [Member] - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Sep. 30, 2023	Mar. 31, 2023
Balance	$ 1,270	$ 1,200
Change in fair value	2,200	70
Balance	$ 3,470	$ 1,270

Note 7 - Accounts Receivable - Summary of Accounts Receivable (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Mar. 31, 2023
Accounts receivable (billed)	$ 21,174	$ 20,707
Accounts receivable (unbilled)	6,335	9,958
Accounts receivable, net	$ 27,509	$ 30,665

Note 8 - Inventory (Details Textual) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Inventory Write-down	$ 700	$ 700	$ 1,070	$ 1,015

Note 8 - Inventory - Summary of Net Inventory (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Mar. 31, 2023
Raw materials	$ 19,337	$ 16,654
Work-in-process	22,714	15,200
Finished goods	3,709	2,996
Deferred program costs	2,075	2,136
Net inventory	$ 47,835	$ 36,986

Note 9 - Prepaid and Other Current Assets (Details Textual) - USD ($) $ in Millions	3 Months Ended			6 Months Ended	12 Months Ended
	Jun. 30, 2021	Mar. 31, 2021	Mar. 31, 2020	Sep. 30, 2023	Mar. 31, 2023	Dec. 31, 2022
Employee Retention Credits Receivable						$ 3.3
Proceeds From Employee Retention Credit				$ 3.0
Cost of Sales [Member]
Employee Retention Credits Benefit					$ 1.8
Selling, General and Administrative Expenses [Member]
Employee Retention Credits Benefit					0.8
Research and Development Expense [Member]
Employee Retention Credits Benefit					0.7
Prepaid Expenses and Other Current Assets [Member]
Employee Retention Credits Receivable					$ 3.3
Maximum [Member]
Percentage of Qualified Wages Paid	70.00%	70.00%	50.00%

Note 10 - Property, Plant and Equipment (Details Textual) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Depreciation, Depletion and Amortization	$ 0.6	$ 0.7	$ 1.2	$ 1.4

Note 10 - Property, Plant and Equipment - Cost and Accumulated Depreciation of Property and Equipment (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Mar. 31, 2023
Property, plant and equipment, gross	$ 58,997	$ 58,651
Less accumulated depreciation	(47,414)	(46,342)
Property, plant and equipment, net	11,583	12,309
Land [Member]
Property, plant and equipment, gross	980	980
Construction in Progress [Member]
Property, plant and equipment, gross	342	748
Building [Member]
Property, plant and equipment, gross	5,416	5,416
Equipment and Software [Member]
Property, plant and equipment, gross	43,915	43,156
Finance Lease, Right-of-use [Member]
Property, plant and equipment, gross	1	1
Furniture and Fixtures [Member]
Property, plant and equipment, gross	1,531	1,535
Leasehold Improvements [Member]
Property, plant and equipment, gross	$ 6,812	$ 6,815

Note 11 - Accounts Payable and Accrued Expenses (Details Textual)	6 Months Ended
	Sep. 30, 2023
Minimum [Member]
Extended Warranty Trigger Period (Year)	1 year
Maximum [Member]
Extended Warranty Trigger Period (Year)	3 years

Note 11 - Accounts Payable and Accrued Expenses - Summary of Accounts Payable and Accrued Expenses (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Mar. 31, 2023
Accounts payable	$ 11,393	$ 13,935
Accrued inventories in-transit	1,123	2,267
Accrued other miscellaneous expenses	4,237	3,870
Accrued contract loss	2,584	3,464
Advanced deposits	1,156	5,653
Accrued compensation	6,041	5,430
Income taxes payable	297	409
Accrued product warranty	1,892	2,638
Accrued restructuring	226	717
Total	$ 28,949	$ 38,383

Note 11 - Accounts Payable and Accrued Expenses - Product Warranty Activity (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Balance at beginning of period	$ 1,926	$ 1,942	$ 2,638	$ 2,066
Provisions for warranties during the period	644	479	852	656
Settlements during the period	(678)	(368)	(1,598)	(669)
Balance at end of period	$ 1,892	$ 2,053	$ 1,892	$ 2,053

Note 12 - Income Taxes (Details Textual) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Income Tax Expense (Benefit)	$ 106	$ (14)	$ 228	$ 18
Liability for Uncertainty in Income Taxes, Current	0		0
Unrecognized Tax Benefits	$ 0		$ 0
Maximum [Member]
Income Tax Expense (Benefit)		$ 100		$ 100

Note 13 - Contingent Consideration (Details Textual) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
	Oct. 01, 2020	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability		$ 850	$ (290)	$ 2,200	$ (120)
Northeast Power Systems, Inc (NEPSI) [Member]
Payments to Acquire Businesses, Gross	$ 26,000
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares (in shares)	873,657
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High, Number of Shares (in shares)	1,000,000	1,000,000		1,000,000
Business Combination, Contingent Consideration Arrangements, Number of Issuable Shares (in shares)		400,000		400,000

Note 13 - Contingent Consideration - Summary of the Key Assumptions Used to Calculate Fair Value of Warrants (Details) $ in Millions	Sep. 30, 2023 USD ($)	Jun. 30, 2023 USD ($)	Mar. 31, 2023 USD ($)	Dec. 31, 2022 USD ($)	Sep. 30, 2022 USD ($)	Jun. 30, 2022 USD ($)	Mar. 31, 2022 USD ($)
Fair value (millions)	$ 3.5	$ 2.6	$ 1.3	$ 0.9	$ 1.1	$ 1.4	$ 1.2
Measurement Input, Revenue Risk Premium [Member]
Business Combination, Contingent Consideration, Liability, Measurement Input	5.30	5.20	5.30	5.30	5.20	6.60	6.50
Measurement Input, Revenue Volatility [Member]
Business Combination, Contingent Consideration, Liability, Measurement Input	27.5	23	25	25	25	30	33
Measurement Input, Share Price [Member]
Business Combination, Contingent Consideration, Liability, Measurement Input	7.55	6.26	4.91	3.68	4.38	5.18	7.61
Measurement Input, Payment Delay [Member]
Business Combination, Contingent Consideration, Liability, Measurement Input	80	80	80	80	80	80	80

Note 14 - Debt (Details Textual) $ in Thousands	Sep. 30, 2023 USD ($)	Mar. 31, 2023 USD ($)	May 06, 2021
Debt, Current	$ 57	$ 75
Equipment Financing Agreements Assumed In Business Acquisition [Member]
Debt, Current	$ 100	$ 100
Neeltran Inc. [Member]
Business Combination, Number of Equipment Financing Agreement Assumed			4

Note 15 - Leases (Details Textual) - USD ($) $ in Thousands	Sep. 30, 2023	Mar. 31, 2023
Property and Equipment, Net [Member]
Finance Lease, Right-of-Use Asset, after Accumulated Amortization	$ 0	$ 1
Maximum [Member]
Lessee, Operating Lease, Renewal Term (Year)	5 years
Maximum [Member] \| Property and Equipment, Net [Member]
Finance Lease, Right-of-Use Asset, after Accumulated Amortization	$ 100

Note 15 - Leases - Operating Lease Assets and Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Mar. 31, 2023
Right-of-use assets	$ 2,493	$ 2,857
Total right-of-use assets	2,493	2,858
Total lease liabilities	$ 2,625	$ 2,992
Weighted-average remaining lease term (Year)	3 years 8 months 12 days	3 years 9 months 14 days
Weighted-average discount rate	8.48%	6.46%
Property and Equipment, Net [Member]
Right-of-use assets - Financing	$ 0	$ 1
Lease Liability Current Portion [Member]
Lease liabilities - ST Financing	0	1
Lease liabilities - ST Operating	696	807
Lease Liability Long Term Portion [Member]
Lease liabilities - LT Operating	$ 1,929	$ 2,184

Note 15 - Leases - Lease Cost (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Operating lease costs - fixed	$ 255	$ 262	$ 514	$ 504
Operating lease costs - variable	40	41	79	76
Short-term lease costs	37	30	74	61
Total lease costs	$ 332	$ 333	$ 667	$ 641

Note 15 - Leases - Minimum Future Lease Obligation (Details) $ in Thousands	Sep. 30, 2023 USD ($)
2024	$ 472
2025	803
2026	755
2027	614
2028	392
Thereafter	15
Total minimum lease payments	3,051
Less: interest	(426)
Lease Liability [Member]
Present value of lease liabilities	$ 2,625

Note 16 - Commitments and Contingencies (Details Textual) - USD ($) $ in Thousands	Sep. 30, 2023	Mar. 31, 2023
Restricted Cash and Cash Equivalents, Noncurrent	$ 616	$ 582
Restricted Cash and Cash Equivalents, Current	$ 500	$ 1,700

Note 17 - Restructuring (Details Textual) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended		12 Months Ended
	Jan. 24, 2023	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Mar. 31, 2023
Restructuring and Related Cost, Workforce To be Reduced Percentage	5.00%
Restructuring Charges		$ (20)	$ 0	$ (14)	$ 0
Employee Severance [Member]
Restructuring Charges	$ 1,000			$ (14)		$ 1,048

Note 17 - Restructuring - Restructuring Charges and Cash Payments (Details) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended		12 Months Ended
	Jan. 24, 2023	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Mar. 31, 2023
Accrued restructuring balance				$ 717
Restructuring Charges		$ (20)	$ 0	(14)	$ 0
Cash payments restructuring				(800)
Accrued restructuring balance		226		226		$ 717
Employee Severance [Member]
Accrued restructuring balance				717	$ 0	0
Restructuring Charges	$ 1,000			(14)		1,048
Cash payments restructuring				(477)		(331)
Accrued restructuring balance		$ 226		$ 226		$ 717

Note 18 - Business Segments (Details Textual) $ in Thousands	3 Months Ended			6 Months Ended
	Sep. 30, 2023 USD ($)	Sep. 30, 2022 USD ($)	Jun. 30, 2022 USD ($)	Sep. 30, 2023 USD ($)	Sep. 30, 2022 USD ($)
Number of Reportable Segments				2
Number of Operating Segments				4
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability	$ 850	$ (290)		$ 2,200	$ (120)
Share-Based Payment Arrangement, Expense	1,111	1,019		2,468	$ 2,052
Corporate, Non-Segment [Member]
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability	900	(300)	$ (100)	2,200
Share-Based Payment Arrangement, Expense	$ 1,100	$ 2,500	$ 2,100	$ 1,000

Note 18 - Business Segments - Operating Results for Business Segments (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Revenues	$ 34,004	$ 27,680	$ 64,258	$ 50,360
Operating Income (loss)	(2,369)	(8,092)	(7,702)	(16,961)
Corporate, Non-Segment [Member]
Operating Income (loss)	(1,942)	(729)	(4,655)	(1,931)
Grid [Member]
Revenues	28,515	25,698	54,251	45,527
Grid [Member] \| Operating Segments [Member]
Revenues	28,515	25,698	54,251	45,527
Operating Income (loss)	(679)	(6,495)	(2,649)	(13,776)
Wind [Member]
Revenues	5,489	1,982	10,007	4,833
Wind [Member] \| Operating Segments [Member]
Revenues	5,489	1,982	10,007	4,833
Operating Income (loss)	$ 252	$ (868)	$ (398)	$ (1,254)

Note 18 - Business Segments - Total Business Segments Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Mar. 31, 2023
Total assets	$ 171,327	$ 175,561
Operating Segments [Member] \| Grid [Member]
Total assets	137,607	135,296
Operating Segments [Member] \| Wind [Member]
Total assets	9,750	14,361
Corporate, Non-Segment [Member]
Total assets	$ 23,970	$ 25,904