Contracts in Progress |
3 Months Ended |
|---|---|
Jan. 31, 2021 | |
| Revenue from Contract with Customer [Abstract] | |
| 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 date of the balance sheet. These amounts are stated on the consolidated balance sheets as Unbilled Receivables of $1,311,480 and $861,300 as of January 31, 2021 and October 31, 2020, respectively.
Our current Deferred Revenue of $1,314,467 and $1,006,454 as of January 31, 2021 and October 31, 2020, 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.
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 (TLS), 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) from the date of sale. These amounts are stated on the consolidated balance sheets as a component of non-current Deferred Revenue and were $203,648 and $195,022 as of January 31, 2021 and October 31, 2020, respectively. |