NOTE 4 - REVENUE

The Company generates revenue primarily 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 between three and twenty-four months. The Company invoices and receives related payments based upon 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
Year ended March 31, 2020	$	13,367,764	$	595,076	$	2,044,448	$	16,007,288
Year ended March 31, 2019	$	14,036,638	$	2,403,732	$	262,188	$	16,702,558


Net Sales by contract type	Over-time		Point-in-time		Totals
Year ended March 31, 2020	$	12,637,728	$	3,369,560	$	16,007,288
Year ended March 31, 2019	$	15,771,213	$	931,345	$	16,702,558

As of March 31, 2020, the Company had $16.8 million of remaining performance obligations, of which $13.8 million were less than 50% complete. The Company expects to recognize all of its 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, and these customers change from year to year. The following table sets forth revenues from customers who accounted for more than 10% of our net sales for the years ended:


	2020				2019
Customer	Amount		Percent		Amount		Percent
Customer A	$	3,558,477	22	%	$	3,196,625	19	%
Customer B	$	2,758,957	17	%	$	*	*	%
Customer C	$	2,063,409	13	%	$	3,223,967	19	%
Customer D	$	*	*	%	$	5,332,515	32	%
Customer E	$	1,835,362	11	%	$	*	*	%

*Less than 10% of total

In our 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 $0.7 million related to our contract liabilities at April 1, 2019. Contract assets consisted of the following at:


			Progress
	Unbilled		payments		Total
March 31, 2020	$	10,635,588	$	(6,130,967)	$	4,504,621
March 31, 2019	$	9,324,361	$	(4,933,529)	$	4,390,832