NOTE 9—CONTRACT ASSETS AND LIABILITIES

For each of our contracts, the timing of revenue recognition, customer billings, and cash collections results in a net contract asset or liability at the end of each reporting period. Contract assets consist of unbilled receivables typically resulting from revenue recognition under contracts when either control has passed to the customer but the product has not yet shipped or the percentage-of-completion of revenue recognition is utilized when revenue recognized exceeds the amount billed to the customer for any project-related services, utilizing labor as the input method. Contract liabilities (formerly referred to on the balance sheet as customer deposits) include advance payments and billings in excess of revenue recognized. Contract assets and contract liabilities were as follows:


	October 31, 2018		April 30, 2018
Contract assets	$	365,000	$	—
Contract liabilities	$	27,000	$	219,000

Contract assets increased $365,000 between April 30, 2018 and October 31, 2018 due to the adoption of the new revenue standard, and relates to the recognition of revenue related to the satisfaction or partial satisfaction of performance obligations for which we have not yet billed.

Contract liabilities decreased $192,000 between April 30, 2018 and October 31, 2018 due to the recognition of revenue on advance payments exceeding additional advance payment receipts.