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 provides 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 December 31, 2020	$	2,885,753	$	683,965	$	3,569,718
Three months ended December 31, 2019	$	3,200,671	$	466,605	$	3,667,276
Nine months ended December 31, 2020	$	9,314,846	$	2,251,330	$	11,566,176
Nine months ended December 31, 2019	$	9,725,635	$	1,349,985	$	11,075,620


Net Sales by contract type	Over-time		Point-in-time		Totals
Three months ended December 31, 2020	$	3,141,416	$	428,302	$	3,569,718
Three months ended December 31, 2019	$	3,439,367	$	227,909	$	3,667,276
Nine months ended December 31, 2020	$	9,251,284	$	2,314,892	$	11,566,176
Nine months ended December 31, 2019	$	9,104,395	$	1,971,225	$	11,075,620

As of December 31, 2020, the Company had $18.4 million of remaining performance obligations, of which $13.0 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				Nine months ended				Nine months ended
	December 31, 2020				December 31, 2019				December 31, 2020				December 31, 2019
Customer	Amount		Percent		Amount		Percent		Amount		Percent		Amount		Percent
A	$	398,011	11	%	$	404,062	11	%	$	2,106,998	18	%	$	1,790,311	16	%
B	$	530,583	15	%	$	*	*	%	$	1,871,256	16	%	$	*	*	%
C	$	609,114	17	%	$	1,215,737	33	%	$	1,679,814	15	%	$	2,320,485	21	%
D	$	682,337	19	%	$	727,084	20	%	$	1,631,010	14	%	$	1,825,213	16	%
E	$	550,096	15	%	$	*	*	%	$	*	*	%	$	*	*	%
F	$	*	*	%	$	*	*	%	$	*	*	%	$	1,136,146	10	%
G	$	*	*	%	$	*	*	%	$	*	*	%	$	1,148,242	10	%

*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 December 31, 2020 contract assets consisted of the following:


			Less: Progress
Contract assets	Unbilled		payments		Total
December 31, 2020	$	10,074,902	$	4,760,249	$	5,314,653
March 31, 2020	$	10,635,588	$	6,130,967	$	4,504,621