REVENUE

6 Months Ended

Sep. 30, 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.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, 2022	$	8,385,441	$	137,206	$	8,522,647
Three months ended September 30, 2021	$	4,403,156	$	394,254	$	4,797,410
Six months ended September 30, 2022	$	15,226,365	$	372,639	$	15,599,004
Six months ended September 30, 2021	$	7,506,287	$	703,352	$	8,209,639

Net Sales by contract type	Over-time		Point-in-time		Totals
Three months ended September 30, 2022	$	8,219,139	$	303,508	$	8,522,647
Three months ended September 30, 2021	$	3,757,988	$	1,039,422	$	4,797,410
Six months ended September 30, 2022	$	14,841,232	$	757,772	$	15,599,004
Six months ended September 30, 2021	$	6,880,637	$	1,329,002	$	8,209,639

As of September 30, 2022, the Company had $49.4 million of remaining performance obligations, of which $44.4 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.

	Three months ended				Three months ended				Six months ended				Six months ended
	September 30, 2022				September 30, 2021				September 30, 2022				September 30, 2021
Customer	Amount		Percent		Amount		Percent		Amount		Percent		Amount		Percent
A	$	1,438,049	17	%	$	1,175,893	25	%	$	2,734,436	18	%	$	2,479,665	30	%
B	$	*	*	%	$	721,405	15	%	$	*	*	%	$	1,660,261	20	%
C	$	*	*	%	$	648,954	14	%	$	*	*	%	$	938,534	11	%
D	$	1,614,929	19	%	$	*	*	%	$	3,378,520	22	%	$	*	*	%
E	$	1,971,441	23	%	$	*	*	%	$	3,043,315	20	%	$	*	*	%

*Less than 10% of total

In 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. For the six months ended September 30, 2022, we recognized revenue of approximately $2.4 million related to our contract liabilities at April 1, 2022. Contract assets consisted of the following at:

			Progress
	Unbilled		payments		Total
September 30, 2022	$	17,522,148	$	(8,302,064)	$	9,220,084
March 31, 2022	$	14,216,187	$	(5,865,956)	$	8,350,231