Revenue and Contract Receivables, net (Tables)

6 Months Ended

Jan. 31, 2015

Revenue and Contract Receivables, net [Abstract]

Contract receivables, net are summarized in the following table.

	Balance at
	January 31, 2015			July 31, 2014
Contract Receivables:
Billed	$	24,480,583		$	26,863,708
Unbilled		23,434,806			23,694,451
		47,915,389			50,558,159
Allowance for doubtful accounts and contract adjustments		(5,966,241	)		(6,126,854	)
Total contract receivables, net	$	41,949,148		$	44,431,305

Contract Receivables and Allowance for Doubtful Accounts and Contract Adjustments by Geographical Areas

Significant concentrations of contract receivables and the allowance for doubtful accounts and contract adjustments are summarized in the following table.

	Balance at January 31, 2015				Balance at July 31, 2014
Region	Contract Receivables		Allowance for Doubtful Accounts and Contract Adjustments		Contract Receivables		Allowance for Doubtful Accounts and Contract Adjustments

United States, Canada and South America	$	41,028,332	$	992,667	$	43,394,442	$	1,611,068
Middle East and Africa		6,758,171		4,973,574		7,010,225		4,386,240
Asia		128,886		---		153,492		129,546
Totals	$	47,915,389	$	5,966,241	$	50,558,159	$	6,126,854

Allowance for Doubtful Accounts and Contract Adjustments

Activity within the allowance for doubtful accounts and contract adjustments is summarized in the following table.

	Three Months Ended January 31,						Six Months Ended January 31,
	2015			2014			2015			2014

Balance at beginning of period	$	6,395,057		$	5,639,291		$	6,126,854		$	5,592,800
Net increase (decrease) due to adjustments in the allowance for:
Contract adjustments (1)		(56,337	)		(288,131	)		243,679			(258,403	)
Doubtful accounts (2)		(372,479	)		(11,688	)		(404,292	)		12,575
Transfer of reserves to allowance for project disallowances (3)		---			(2,500	)		---			(10,000	)
Balance at end of period	$	5,966,241		$	5,336,972		$	5,966,241		$	5,336,972

(1)

Increases (decreases) to the allowance for contract adjustments on the condensed consolidated balance sheets are recorded as (decreases) increases to revenue, net on the condensed consolidated statements of operations.

(2)

Increases (decreases) to the allowance for doubtful accounts on the condensed consolidated balance sheets are recorded as increases (decreases) to administrative and other indirect operating expenses on the condensed consolidated statements of operations.

(3)

Refer to Note 11 of these condensed consolidated financial statements for a summary of the allowance for project disallowances.