Deferred Revenue/Costs in Excess of Billings

12 Months Ended

Jun. 30, 2013

Deferred Revenuecosts In Excess Of Billings

Deferred Revenue/Costs in Excess of Billings

20. Deferred Revenue/Costs in Excess of Billings

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 costs in excess of billings on the accompanying consolidated balance sheet the difference between the amounts invoiced on the project and the amount recognized into revenue.

As of June 30, 2013, the Company invoiced $743,500 and recognized $1,097,030 as revenue ($481,000 recognized during fiscal 2013). The balance of $353,530 is recorded as other receivables. The project is expected to be completed by December 2013. At June 30, 2013, the Company had no billed accounts receivable outtanding with respect to this purchase order as of June 30, 2013.