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Costs in Excess of Billings or Deferred Revenue	3 Months Ended
Sep. 30, 2012
Costs In Excess Of Billings Or Deferred Revenue
Costs in Excess of Billings or Deferred Revenue	11. Costs in Excess of Billings or Deferred Revenue In January 2012, the Company received a purchase order for $1.1 million from Raytheon. The purchase order is for development of low cost manufacturing processes for infrared optics and is in support of Raytheon’s $13.4 million Defense Advanced Research Projects Agency’s (DARPA) Low Cost Thermal Imaging Manufacturing (LCTI-M) program. The goal of LCTI-M is to develop a wafer scale manufacturing process that will result in a camera on a chip, making thermal imagers affordable, accessible, and ubiquitous to every warfighter. The Company is using the “cost-to-cost method” to allow it to measure progress toward completion based on the ratio of costs incurred to date to total estimated costs. The Company has recorded in deferred revenue on the accompanying consolidated balance sheet the difference between the amounts invoiced on the project and the amount recognized into revenue. As of September 30, 2012, the Company invoiced $643,500 in milestone billings per the agreement, and recognized $869,000 as revenue, including $253,000 for the quarter ended September 30, 2012. The balance of $225,500 is recorded as other receivables. The project is expected to be completed by July 2013. At September 30, 2012 we had $0 in accounts receivable with respect to this purchase order, as reflected in the accompanying consolidated balance sheet.

Costs in Excess of Billings or Deferred Revenue

3 Months Ended

Sep. 30, 2012

Costs In Excess Of Billings Or Deferred Revenue

Costs in Excess of Billings or Deferred Revenue

11. Costs in Excess of Billings or Deferred Revenue

In January 2012, the Company received a purchase order for $1.1 million from Raytheon. The purchase order is for development of low cost manufacturing processes for infrared optics and is in support of Raytheon’s $13.4 million Defense Advanced Research Projects Agency’s (DARPA) Low Cost Thermal Imaging Manufacturing (LCTI-M) program. The goal of LCTI-M is to develop a wafer scale manufacturing process that will result in a camera on a chip, making thermal imagers affordable, accessible, and ubiquitous to every warfighter.

The Company is using the “cost-to-cost method” to allow it to measure progress toward completion based on the ratio of costs incurred to date to total estimated costs. The Company has recorded in deferred revenue on the accompanying consolidated balance sheet the difference between the amounts invoiced on the project and the amount recognized into revenue.

As of September 30, 2012, the Company invoiced $643,500 in milestone billings per the agreement, and recognized $869,000 as revenue, including $253,000 for the quarter ended September 30, 2012. The balance of $225,500 is recorded as other receivables. The project is expected to be completed by July 2013. At September 30, 2012 we had $0 in accounts receivable with respect to this purchase order, as reflected in the accompanying consolidated balance sheet.

- Definition

The entire disclosure for deferred revenues at the end of the reporting period, and description and amounts of significant changes that occurred during the reporting period. Deferred revenue is a liability as of the balance sheet date related to a revenue producing activity for which revenue has not yet been recognized. Generally, an entity records deferred revenue when it receives consideration from a customer before achieving certain criteria that must be met for revenue to be recognized in conformity with GAAP.

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