Quarterly report pursuant to Section 13 or 15(d)

Contracts in Progress

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Contracts in Progress
6 Months Ended
Apr. 30, 2017
Contracts In Progress  
Contracts in Progress

NOTE 7 – CONTRACTS IN PROGRESS

 

Costs and estimated earnings in excess of billings on uncompleted contracts represent accumulated project expenses and fees which have not been invoiced to customers as of the date of the balance sheet. These amounts are stated on the consolidated balance sheets as Unbilled Receivables of $4,189,052 and $3,406,693 as of April 30, 2017 and October 31, 2016, respectively.

 

Our Deferred Revenue of $327,870 and $464,541 as of April 30, 2017 and October 31, 2016, respectively, consists of billings in excess of costs and revenues received as part of our warranty obligations upon completing a sale – elaborated further in the last paragraph of this note.

 

Billings in excess of cost and estimated earnings on uncompleted contracts represent project invoices billed to customers that have not been earned as of the date of the balance sheets. These amounts are stated on the balance sheets as a component of Deferred Revenue of $0 as of April 30, 2017 and October 31, 2016, respectively.

 

Revenue received as part of sales of equipment includes a provision for warranty and is treated as deferred revenue, along with extended warranty sales, and Through Life Support, a support package offering five years hardware and software  support agreements. These amounts are amortized according to the contractual period in question which is over 12 months representing the warranty or support period for the equipment sold, or 36 months or 60 months for Through Life Support obligations, according to the package purchased by our customer.    The short term portions of the deferred revenues were $273,998 and $464,541 as of April 30, 2017 and October 31, 2016, respectively. The long term portions of the deferred revenues were $53,872 and $0 as of April 30, 2017 and October 31, 2016 respectively.