COSTS INCURRED ON UNCOMPLETED CONTRACTS

3 Months Ended

Jun. 30, 2016

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, 2016			March 31, 2016
Cost incurred on uncompleted contracts, beginning balance	$	5,491,605		$	4,068,488
Total cost incurred on contracts during the period	2,998,497			12,783,323
Less cost of sales, during the period	(3,109,412		)	(11,360,206		)
Cost incurred on uncompleted contracts, ending balance	$	5,380,690		$	5,491,605

Billings on uncompleted contracts, beginning balance	$	3,095,963		$	2,060,244
Plus: Total billings incurred on contracts, during the period	5,315,095			17,889,671
Less: Contracts recognized as revenue, during the period	(4,644,805		)	(16,853,952		)
Billings on uncompleted contracts, ending balance	$	3,766,253		$	3,095,963

Cost incurred on uncompleted contracts, ending balance	$	5,380,690		$	5,491,605
Billings on uncompleted contracts, ending balance	3,766,253			3,095,963
Costs incurred on uncompleted contracts, in excess of progress billings	$	1,614,437		$	2,395,642

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, 2016 and March 31, 2016, we had billings on uncompleted contracts in excess of related costs of $1,221,050 and $1,629,018, respectively. Billings on uncompleted contracts represent customer prepayments on their contracts on which all revenue recognition criteria were not met. 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. We record provisions for losses within costs of sales in our condensed consolidated statement of operations and comprehensive income.