Customer Deposits

9 Months Ended

Jan. 31, 2013

Customer Deposits [Abstract]

Other Liabilities Disclosure [Text Block]

CUSTOMER DEPOSITS

The contract for the potted coil assembly, dated March 7, 2012, provides for milestone payments in the aggregate amount of $1,400,000 to be paid by the customer. This aggregate amount will be used to procure raw materials and to establish a 500-piece finished goods buffer. These milestone payments will be recovered by the customer ratably over the course of the contract as invoices are paid. As of January 31, 2013, we have received milestone payments associated with this new contract in the amount of $1,086,000. In addition, we have $22,000 in unrecovered milestone payments associated with a previous contract. The net amounts are reflected as a customer deposit under current liabilities in the accompanying consolidated balance sheet as of January 31, 2013. In accordance with our revenue recognition policy, we recognize revenue on this contract upon monthly shipment of the product.

For certain customers, we collect payment at the time the order is placed. These deposits are classified as a liability and will be recognized as revenue at the time of shipment in accordance with our revenue recognition policy. As of January 31, 2013 we had approximately $19,000 in customer deposits related to this arrangement.