ACCRUED EXPENSES

12 Months Ended

Mar. 31, 2015

NOTE 7 - ACCRUED EXPENSES

Accrued expenses included the following as of March 31:	2015		2014
Accrued compensation	$	613,838	$	320,419
Interest rate swaps market value		--		231,783
Provision for contract losses		533,799		3,259,103
Accrued interest expense		436,787		--
Other		81,234		81,723
Total	$	1,665,658	$	3,893,028

Our contract loss provision at March 31, 2015 and 2014 includes approximately $0.5 million and $2.7 million, respectively, 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. As a result of the customer filing a voluntary bankruptcy claim, the demand is now considered an unsecured creditor claim within the customer’s overall bankruptcy proceedings. It is more likely than not, that we will not be able to recover the full amount of our claim. As such, part of the total reduction in the liability reflects the netting of approximately $0.8 million of accumulated costs in work-in-progress and $1.1 million of accounts receivable with the loss provision. Accrued interest expense is for deferred interest costs accounted for under the effective interest method in connection with the Utica Credit Loan Note due November 2018.