3. Contract Receivables, net

	October 31, 2012			July 31, 2012


Billed	$	40,781,996		$	42,977,016
Unbilled		31,193,272			28,829,818
		71,975,268			71,806,834

Allowance for doubtful accounts and contract adjustments		(11,322,000	)		(10,238,391	)

	$	60,653,268		$	61,568,443

Unbilled receivables result from revenues which have been earned, but are not billed as of period-end. The above unbilled balances are comprised of incurred costs plus fees not yet processed and billed; and differences between year-to-date provisional billings and year-to-date actual contract costs incurred. Management anticipates that the October 31, 2012 unbilled receivables will be substantially billed and collected within one year. Within the above billed balances are contractual retainages in the amount of approximately $246,000 and $248,000 at October 31, 2012 and July 31, 2012. Management anticipates that the July 31, 2012 retainage balance will be substantially collected within one year. For the three months ended October 31, 2012 and October 29, 2011, the quarter provision for allowance for doubtful accounts and contract adjustments was approximately $1.1 million and $.2 million, respectively.

Included in the balance of receivables are receivables due under the contracts with organizations in Kuwait of $14.5 million at October 31, 2012 and July 31, 2012. Of the outstanding balances due from Kuwait, approximately $1.7 million and $1.9 million were included in billings in excess of revenue as of October 31, 2012 and July 31, 2012, respectively. Included in the balance of unbilled receivables are receivables due under certain contracts with organizations in China of $4.7 million and $2.8 million at October 31, 2012 and July 31, 2012, respectively.