Quarterly report pursuant to Section 13 or 15(d)

CONTRACTS IN PROGRESS

v3.23.1
CONTRACTS IN PROGRESS
6 Months Ended
Apr. 30, 2023
Contracts In Progress  
CONTRACTS IN PROGRESS

NOTE 9 – 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 balance sheet date. These amounts are stated on the consolidated balance sheets as Unbilled Receivables of $1,099,066 and $602,115 as of April 30, 2023, and October 31, 2022, respectively.

 

Deferred Revenue of $878,423 and $790,458 as of April 30, 2023, and October 31, 2022, respectively, consist of billings in excess of costs and revenues received as part of our warranty obligations upon completing a sale, as elaborated further in the last paragraph of this Note.

 

Sales of equipment include a separate performance obligation for warranty or Through Life Support (“TLS”) which may be optionally purchased by the customer. This is treated as deferred revenue which are amortized over the relevant obligation period (12 months is our standard warranty or 36 or 60-months from the date of delivery for our TLS product). These amounts are stated on the consolidated balance sheets as a component of Deferred Revenue and were $233,592 and $229,238 as of April 30, 2023, and October 31, 2022, respectively.