COSTS INCURRED ON UNCOMPLETED CONTRACTS

3 Months Ended

Jun. 30, 2013

COSTS INCURRED ON UNCOMPLETED CONTRACTS

COSTS INCURRED ON UNCOMPLETED CONTRACTS

NOTE 5 — COSTS INCURRED ON UNCOMPLETED CONTRACTS

The following table sets forth information as to costs incurred on uncompleted contracts as of:

	June 30, 2013			March 31, 2013
Cost incurred on uncompleted contracts, beginning balance	$	6,180,839		$	10,879,743
Total cost incurred on contracts during the period	5,401,497			21,215,441
Less cost of sales, during the period	(6,676,449		)	(25,914,345		)
Cost incurred on uncompleted contracts, ending balance	$	4,905,887		$	6,180,839
Billings on uncompleted contracts, beginning balance	$	1,882,546		$	6,969,717
Plus: Total billings incurred on contracts, during the period	6,869,330			27,385,748
Less: Contracts recognized as revenue, during the period	(7,096,692		)	(32,472,919		)
Billings on uncompleted contracts, ending balance	$	1,655,184		$	1,882,546
Cost incurred on uncompleted contracts, ending balance	$	4,905,887		$	6,180,839
Billings on uncompleted contracts, ending balance	1,655,184			1,882,546
Costs incurred on uncompleted contracts, in excess of progress billings	$	3,250,703		$	4,298,293

Contract costs consist primarily of labor and materials and related overhead, to the extent that such costs are recoverable. Revenues associated with these contracts are recorded only when the amount of recovery can be estimated reliably and realization is probable.

As of June 30, 2013 and March 31, 2013, we had deferred revenues totaling $103,521 and $253,813, respectively. Deferred revenues represent customer prepayments on their contracts and completed contracts on which all revenue recognition criteria were not met.   We record provisions for losses within costs of sales in our consolidated statement of operations and comprehensive loss. We also receive advance billings and deposits representing down payments for acquisition of materials and progress payments on contracts. The agreements with our customers allow us to offset the progress payments against the costs incurred.