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 its obligations can range 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 September 30, 2020	$	3,225,503	$	1,488,430	$	4,713,933
Three months ended September 30, 2019	$	2,862,936	$	211,140	$	3,074,076
Six months ended September 30, 2020	$	6,429,093	$	1,567,365	$	7,996,458
Six months ended September 30, 2019	$	6,524,964	$	883,380	$	7,408,344


Net Sales by contract type	Over-time		Point-in-time		Totals
Three months ended September 30, 2020	$	3,081,971	$	1,631,962	$	4,713,933
Three months ended September 30, 2019	$	2,612,089	$	461,987	$	3,074,076
Six months ended September 30, 2020	$	6,109,868	$	1,886,590	$	7,996,458
Six months ended September 30, 2019	$	5,665,028	$	1,743,316	$	7,408,344

As of September 30, 2020, the Company had $14.8 million of remaining performance obligations, of which $12.8 million were less than 50% complete. The Company expects to recognize all of its remaining performance obligations as revenue over-time or at a point-in-time during the next 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 presents customers who accounted for 10% or more of our net sales for the following periods:


	Three months ended				Three months ended				Six months ended				Six months ended
	September 30, 2020				September 30, 2019				September 30, 2020				September 30, 2019
Customer	Amount		Percent		Amount		Percent		Amount		Percent		Amount		Percent
A	$	694,332	15	%	$	663,855	22	%	$	1,708,987	21	%	$	1,386,249	19	%
B	$	686,486	15	%	$	*	*	%	$	1,340,673	17	%	$	*	*	%
C	$	499,921	11	%	$	815,742	27	%	$	1,070,701	13	%	$	1,104,747	15	%
D	$	558,160	12	%	$	510,599	17	%	$	948,672	12	%	$	1,098,129	15	%
E	$	726,921	15	%	$	*	*	%	$	*	*	%	$	*	*	%
F	$	575,315	12	%	$	*	*	%	$	*	*	%	$	*	*	%
G	$	*	*	%	$	336,935	11	%	$	*	*	%	$	*	*	%
H	$	*	*	%	$	*	*	%	$	*	*	%	$	1,097,563	15	%
I	$	459,441	10	%	$	305,114	10	%	$	*	*	%	$	923,133	12	%

*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 $0.8 million related to our contract liabilities at March 31, 2020. At September 30, 2020 contract assets consisted of the following:


			Progress
Contract assets	Unbilled		payments		Total
September 30, 2020	$	10,130,846	$	(4,150,313)	$	5,980,533
March 31, 2020	$	10,635,588	$	(6,130,967)	$	4,504,621