NOTE 8 – 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 $1,902,587 and $3,013,116 as of January 31, 2019 and October 31, 2018, respectively.

Our Deferred Revenue of $1,233,125 and $651,820 as of January 31, 2019 and October 31, 2018, respectively, consists of billings in excess of costs and revenues received as part of our post-sales warranty and after-sales technical support (“TEAM” or “Through Life Support”) 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 $424,533 and $0 as of January 31, 2019 and October 31, 2018, respectively.

Revenue received as part of sales of equipment via our Products Segment includes a provision for warranty and after-sales technical support (“TEAM” or “Through Life Support”) is treated as deferred revenue. These amounts are amortized as follows: