ACCRUED EXPENSES

9 Months Ended

Dec. 31, 2014

ACCRUED EXPENSES

ACCRUED EXPENSES

NOTE 8 – ACCRUED EXPENSES	December 31, 2014		March 31, 2014
Provision for contract losses	$	2,669,711	$	3,259,103
Accrued interest expense		396,062		--
Accrued compensation		246,923		320,419
Interest rate swaps market value		--		231,783
Other		32,491		81,723
Total	$	3,345,187	$	3,893,028

Our contract loss provision includes approximately $2.4 million for estimated contract losses in connection with a certain customer purchase agreement. We filed a demand for arbitration under the contract to recover damages, together with attorney's fees, interest and costs subsequent to the customer’s request to reduce the number of units ordered under the purchase agreement. The claim in the arbitration is now considered an unsecured creditor claim within the customer’s overall bankruptcy proceedings. In December 2014, our Board of Directors passed a resolution reducing compensation and fees paid to our chairman for his service as our principal executive officer and each member of the Board of Directors to zero. Accrued interest expense includes $396,062 for deferred interest costs in connection with the Utica Credit Loan Note due November 2018.