Quarterly report pursuant to Section 13 or 15(d)

Contracts in Progress

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Contracts in Progress
9 Months Ended
Jul. 31, 2018
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 $2,349,871 and $2,723,172 as of July 31, 2018 and October 31, 2017, respectively.

 

Our Deferred Revenue of $325,842 and $452,098 as of July 31, 2018 and October 31, 2017, respectively, consists of billings in excess of costs and estimated earnings 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 $1,838 and $0 as of July 31, 2018 and October 31, 2017, 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 (which is a support package (for major software upgrades, service and technical support for the life cycle of the product) with these amounts amortized over 12 months, our stated warranty period, from the date of sale and 60 months for Through Life Support. These amounts are stated on the balance sheets as a component of Deferred Revenue of $79,205 and $76,574 as of July 31, 2018 and October 31, 2017, respectively.