ACCRUED EXPENSES

6 Months Ended

Sep. 30, 2016

ACCRUED EXPENSES

ACCRUED EXPENSES

NOTE 8 - ACCRUED EXPENSES

Accrued expenses included the following as of:

	September 30, 2016		March 31, 2016
Accrued compensation	$	880,875	$	872,114
Provision for contract losses	424,253		464,785
Accrued interest expense	103,594		296,344
Other	195,794		171,242
Total	$	1,604,516	$	1,804,485

Our contract loss provision at both September 30, 2016 and March 31, 2016 includes approximately $0.4 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. As a result of the customer filing for bankruptcy protection, our demand became an unsecured creditor claim within the customer’s overall bankruptcy proceedings. The customer has since emerged from bankruptcy protection, and it is more likely than not that we will not be able to recover the full amount of our claim. Accrued interest expense is for deferred interest costs in connection with our outstanding long-term debt.