NOTE 4 - REVENUE

The Company generates its revenues primarily from performance obligations completed under contracts with customers in two main market sectors: defense and precision industrial. The period over which the Company performs ranges from three to thirty-six 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		Industrial		Totals
Three months ended June 30, 2020	$	3,203,590	$	78,935	$	3,282,525
Three months ended June 30, 2019	$	3,409,291	$	924,977	$	4,334,268


Net Sales by contract type	Over-time		Point-in-time		Totals
Three months ended June 30, 2020	$	3,027,897		254,628	$	3,282,525
Three months ended June 30, 2019	$	3,052,938		1,281,330	$	4,334,268

As of June 30, 2020, the Company had $14.4 million of remaining performance obligations, of which $11.3 million were less than 50% complete. The Company expects to recognize all of its remaining performance obligations as revenue within the next three to thirty-six months.

We have been dependent in each year on a small number of customers who generate a significant portion of our business, and these customers can change from year to year. The following table sets forth information as to net sales from customers who accounted for more than 10% of our net sales for the three months ended:


	June 30, 2020				June 30, 2019
Customer	Amount		Percent		Amount		Percent
A	$	1,014,655	31	%	$	*	*	%
B	$	654,187	20	%	$	*	*	%
C	$	570,780	17	%	$	1,050,577	24	%
D	$	390,512	12	%	$	*	*	%
E	$	*	*	%	$	1,255,055	29	%
F	$	*	*	%	$	618,019	14	%
G	$	*	*	%	$	549,192	13	%

*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 2021, we recognized revenue of $0.4 million related to our contract liabilities at March 31, 2020. At June 30, 2020 contract assets consisted of the following:


			Progress
Contract assets	Unbilled		payments		Total
June 30, 2020	$	9,104,826	$	(3,907,363)	$	5,197,463
March 31, 2020	$	10,635,588	$	(6,130,967)	$	4,504,621