Revenue and Contract Receivables, net (Tables)

9 Months Ended

Apr. 30, 2016

Revenue and Contract Receivables, net [Abstract]

Revenue Recognition

Revenue is recognized as follows:

Contract Type	Work Type	Revenue Recognition Policy
Time and materials	Consulting	As incurred at contract rates.
Fixed price	Consulting	Percentage of completion, approximating the ratio of either total costs or Level of Effort (LOE) hours incurred to date to total estimated costs or LOE hours.
Cost-plus	Consulting	Costs as incurred plus fees.  Fees are recognized as revenue using percentage of completion determined by the percentage of LOE hours incurred to total LOE hours in the respective contracts.

Contract Receivables, Net

Contract receivables, net are summarized in the following table.

	Balance at
	April 30, 2016			July 31, 2015
Contract Receivables:
Billed	$	20,926,430		$	22,915,726
Unbilled		19,330,498			25,904,691
		40,256,928			48,820,417
Allowance for doubtful accounts and contract adjustments		(5,798,094	)		(5,954,261	)
Total contract receivables, net	$	34,458,834		$	42,866,156

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 April 30, 2016				Balance at July 31, 2015
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	$	35,150,132	$	903,641	$	43,629,044	$	1,042,570
Middle East and Africa		5,061,796		4,894,453		5,066,789		4,894,453
Asia		45,000		---		124,584		17,238
Totals	$	40,256,928	$	5,798,094	$	48,820,417	$	5,954,261

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						Nine Months Ended
	April 30, 2016			May 2, 2015			April 30,  2016			May 2,  2015
Balance at beginning of period	$	6,119,050		$	6,359,531		$	5,954,261		$	6,507,869
Net increase (decrease) due to adjustments in the allowance for:
Contract adjustments (1)		(427,968	)		(63,401	)		(577,548	)		180,278
Doubtful accounts (2)		107,012			12,866			421,381			(379,151	)
Balance at end of period	$	5,798,094		$	6,308,996		$	5,798,094		$	6,308,996

(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.