NOTE 4 - REVENUE

The Company generates its revenues from performance obligations completed under contracts with customers in three main market sectors: defense, energy and precision industrial. The period over which the Company performs is generally less than one year. The Company invoices and receives related payments based on performance progress not less frequently than monthly.

Revenue is recognized over-time or at a point-in-time given the terms and conditions of the related contracts. The Company utilizes an inputs methodology based on estimated labor hours to measure performance progress. This model best depicts the transfer of control to the customer.

The Company’s contract portfolio is comprised of fixed-price contracts and provide for product type sales only. The following table presents net sales on a disaggregated basis by market and contract type:


Net Sales by market	Defense		Energy		Industrial		Totals
Three months ended September 30, 2019	$	2,862,936	$	68,628	$	142,512	$	3,074,076
Three months ended September 30, 2018	$	3,336,930	$	139,267	$	144,988	$	3,621,185
Six months ended September 30, 2019	$	6,524,964	$	77,557	$	805,823	$	7,408,344
Six months ended September 30, 2018	$	7,310,910	$	235,804	$	173,294	$	7,720,008


Net Sales by contract type	Over-time		Point-in-time		Totals
Three months ended September 30, 2019	$	2,612,089	$	461,987	$	3,074,076
Three months ended September 30, 2018	$	3,389,209	$	231,976	$	3,621,185
Six months ended September 30, 2019	$	5,665,028	$	1,743,316	$	7,408,344
Six months ended September 30, 2018	$	7,228,136	$	491,872	$	7,720,008

As of September 30, 2019, the Company had $16.4 million of remaining performance obligations, of which $8.5 million were less than 50% complete. We expect to recognize all of the remaining performance obligations as revenue within the next 24 months.

We are dependent each year on a small number of customers who generate a significant portion of our business. These customers change from year to year. The following table lists customers who accounted for more than 10% of our net sales:


	Three months ended				Three months ended				Six months ended				Six months ended
	September 30, 2019				September 30, 2018				September 30, 2019				September 30, 2018
Customer	Amount		Percent		Amount		Percent		Amount		Percent		Amount		Percent
A	$	663,855	22	%	$	*	*	%	$	1,386,249	19	%	$	*	*	%
B	$	510,599	17	%	$	585,873	16	%	$	1,098,129	15	%	$	1,601,021	21	%
C	$	*	*	%	$	1,516,399	42	%	$	1,097,563	15	%	$	3,109,839	40	%
D	$	815,742	27	%	$	619,094	17	%	$	1,104,747	15	%	$	993,048	13	%
E	$	305,114	10	%	$	*	*	%	$	923,133	12	%	$	*	*	%
F	$	336,935	11	%	$	*	*	%	$	*	*	%	$	*	*	%

*Less than 10% of total

On our condensed consolidated balance sheet, contract assets and contract liabilities are reported in a net position on a contract-by-contract basis at the end of each reporting period. In fiscal 2020, we recognized revenue of $0.5 million related to our contract liabilities at March 31, 2019. At September 30, 2019 contract assets consisted of the following:


			Less: Progress
Contract assets	Unbilled		payments		Total
September 30, 2019	$	8,952,654	$	5,363,633	$	3,589,021
March 31, 2019	$	9,324,361	$	4,933,529	$	4,390,832