CONTRACT BALANCES

3 Months Ended

Dec. 31, 2018

Contract Balances [Abstract]

CONTRACT BALANCES

4. CONTRACT BALANCES

Accounts receivable, which are included in current assets on the Consolidated Balance Sheets, totaled $19.4 million at December 31, 2018, a $2.8 million decrease from $22.2 million at September 30, 2018. The decrease was mainly due to timing of billings and receipts. Contract assets, which are included in current assets on the Consolidated Balance Sheets, totaled $10.5 million at December 31, 2018, a $5.1 million increase from $5.4 million at September 30, 2018. This was due to an increase in costs and estimated earnings in excess of billings on uncompleted projects. Contract liabilities, which are included in current liabilities on the Consolidated Balance Sheets, totaled $1.6 million at December 31, 2018, a $1.7 million decrease from $3.3 million at September 30, 2018. This was due to a decrease in billings in excess of costs and estimated earnings on uncompleted projects.

The Company’s accounts receivable consists of amounts that have been billed to customers. Collateral is generally not required. A majority of the Company’s contracts have monthly billing terms and payment terms within 30 to 45 days after invoices have been issued. The Company attempts to negotiate two-week billing terms and 15-day payment terms on larger projects. The timing of billings to customers may generate contract assets or contract liabilities.

During the three months ended December 31, 2018, we recognized revenue of $1.7 million that was included in the contract liability balance at September 30, 2018.

Accounts receivable, contract assets and contract liabilities consisted of the following:

	September 30, 2018		December 31, 2018		Change
Accounts receivable-trade	$	22,227,555	$	19,368,805	$	(2,858,750	)
Contract assets
Cost and estimated eanings in excess of billings	$	5,353,375	$	10,531,124	$	5,177,749
Contract liabilites
Billings in excess of cost and estimated earnings	$	3,261,201	$	1,556,761	$	(1,704,440	)