REVENUE

12 Months Ended

Mar. 31, 2022

REVENUE

REVENUE

NOTE 4 - REVENUE

The Company generates revenue 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 be between three and 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
Year ended March 31, 2022	$	20,854,812	$	1,427,683	$	22,282,495
Year ended March 31, 2021	$	12,650,708	$	2,944,850	$	15,595,558

Net Sales by contract type	Over-time		Point-in-time		Totals
Year ended March 31, 2022	$	19,992,438	$	2,290,057	$	22,282,495
Year ended March 31, 2021	$	12,869,520	$	2,726,038	$	15,595,558

As of March 31, 2022, the Company had $47.3 million of remaining performance obligations, of which $43.7 million were less than 50% complete. The Company expects to recognize all its remaining performance obligations as revenue within the next thirty-six 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 fiscal years ended March 31:

	2022				2021
Customer	Amount		Percent		Amount		Percent
Customer A	$	4,448,624	20	%	$	2,704,985	17	%
Customer B	$	3,534,619	16	%	$	2,682,881	17	%
Customer C	$	*	*	%	$	2,308,564	15	%
Customer D	$	*	*	%	$	2,145,465	14	%
Customer E	$	2,505,205	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 2022 and 2021, we recognized revenue of $0.2 and $0.8 million related to our contract liabilities at April 1, 2021 and 2020, respectively. Contract assets consisted of the following at:

			Progress
	Unbilled		payments		Total
March 31, 2022	$	14,216,187	$	(5,865,955)	$	8,350,231
March 31, 2021	$	11,392,948	$	(5,860,540)	$	5,532,408