Quarterly report pursuant to Section 13 or 15(d)

CONTRACTS IN PROGESS

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CONTRACTS IN PROGESS
3 Months Ended
Jan. 31, 2022
Contracts In Progess  
CONTRACTS IN PROGESS

NOTE 9 – CONTRACTS IN PROGESS

 

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 $401,661 and $1,080,384 as of January 31, 2022, and October 31, 2021, respectively.

 

Our Deferred Revenue of $1,151,451 and $1,879,790 as of January 31, 2022, and October 31, 2021, respectively, consists 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, which is treated as deferred revenue, along with extended warranty sales, which may be purchased by customers. These amounts are amortized over the relevant warranty period (12 months is our standard warranty or 24, 36 or 60 months for extended warranty, sold as Through Life Support (TLS) Package) from the date of sale. These amounts are stated on the consolidated balance sheets as a component of Deferred Revenue and were $289,956 and $277,937 as of January 31, 2022 and October 31, 2021, respectively.