XML 65 R13.htm IDEA: XBRL DOCUMENT v2.4.1.9
Research and Development
9 Months Ended
Nov. 30, 2014
Research and Development [Abstract]  
Research, Development, and Computer Software Disclosure [Text Block]
Research and Development

Expenditures for research and development are charged to expense as incurred. Such expenditures amount to $4,915 and $2,353 for the three months ended November 30, 2014 and 2013, respectively, and $16,198 and $13,676 for the nine months ended November 30, 2014 and 2013, respectively, net of customer reimbursement, and are included within Engineering and Technical Support Expenses on the Consolidated Statements of Operations and Comprehensive Income (Loss).

The Company enters into development and long-term supply agreements with certain of its OEM ("Original Equipment Manufacturer") customers. Revenues earned from the development services are recorded based upon the milestone method of revenue recognition provided certain criteria are met. Amounts due from OEM customers for development services are reflected as a reduction of research and development expense. For the three months ended November 30, 2014 and 2013, the Company recorded $2,029 and $5,077, respectively, and for the nine months ended November 30, 2014 and 2013, the Company recorded $6,825 and $6,432, respectively, of development service revenue as a reduction of research and development expense based upon the achievement of milestones.