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 December 31, 2019	$	3,200,671	$	373,357	$	93,248	$	3,667,276
Three months ended December 31, 2018	$	4,196,944	$	33,790	$	39,662	$	4,270,396
Nine months ended December 31, 2019	$	9,725,635	$	450,914	$	899,071	$	11,075,620
Nine months ended December 31, 2018	$	11,507,854	$	267,794	$	214,756	$	11,990,404


Net Sales by contract type	Over-time		Point-in-time		Totals
Three months ended December 31, 2019	$	3,439,367	$	227,909	$	3,667,276
Three months ended December 31, 2018	$	4,086,713	$	183,683	$	4,270,396
Nine months ended December 31, 2019	$	9,104,395	$	1,971,225	$	11,075,620
Nine months ended December 31, 2018	$	11,314,599	$	675,805	$	11,990,404

As of December 31, 2019, the Company had $17.0 million of remaining performance obligations, of which $13.6 million were less than 50% complete. We would 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				Nine months ended				Nine months ended
	December 31, 2019				December 31, 2018				December 31, 2019				December 31, 2018
Customer	Amount		Percent		Amount		Percent		Amount		Percent		Amount		Percent
A	$	1,215,737	33	%	$	1,124,294	26	%	$	2,320,485	21	%	$	2,117,342	18	%
B	$	727,084	20	%	$	1,008,264	24	%	$	1,825,213	16	%	$	2,609,284	22	%
C	$	404,062	11	%	$	*	*	%	$	1,790,311	16	%	$	*	*	%
D	$	*	*	%	$	*	*	%	$	1,148,242	10	%	$	*	*	%
E	$	*	*	%	$	1,183,208	28	%	$	1,136,146	10	%	$	4,293,047	36	%

*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 $0.6 million related to our contract liabilities at March 31, 2019. At December 31, 2019 contract assets consisted of the following:


			Less: Progress
Contract assets	Unbilled		payments		Total
December 31, 2019	$	8,870,887	$	5,069,959	$	3,800,928
March 31, 2019	$	9,324,361	$	4,933,529	$	4,390,832