Quarterly report pursuant to Section 13 or 15(d)

SIGNIFICANT ACCOUNTING POLICIES UPDATE (Tables)

v3.10.0.1
SIGNIFICANT ACCOUNTING POLICIES UPDATE (Tables)
9 Months Ended
Sep. 30, 2018
Accounting Policies [Abstract]  
Schedule of Adjustments in Contract Estimates
The aggregate impact of adjustments in contract estimates to net income (loss) is presented below:
 
Nine months ended September 30,
 
2018
 
2017
 
Training and Simulation Division
 
Power Systems Division
 
Training and Simulation Division
 
Power Systems Division
Net income (loss)
$
449,580

 
$
77,403

 
$
858,769

 
$
92,050

 
Three months ended September 30,
 
2018
 
2017
 
Training and Simulation Division
 
Power Systems Division
 
Training and Simulation Division
 
Power Systems Division
Net income (loss)
$
(139,016
)
 
$
320,269

 
$
402,581

 
$
(208,861
)
Revenue by Major Product Line
Revenue by major product line was as follows:
 
Nine months ended September 30,
 
Three months ended September 30,
 
2018
 
2017
 
2018
 
2017
Product Revenue
 
 
 
 
 
 
 
Air Warfare Simulation
$
13,324,429

 
$
14,476,934

 
$
3,667,058

 
$
5,075,082

Vehicle Simulation
17,040,554

 
8,694,974

 
6,040,922

 
4,351,624

Use-of-Force
10,677,612

 
9,636,388

 
4,132,059

 
4,489,977

Service Revenue
 
 
 
 
 
 
 
Warranty
2,533,558

 
2,331,673

 
825,863

 
680,284

Total Training and Simulation Division
$
43,576,153

 
$
35,139,969

 
$
14,665,902

 
$
14,596,967

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Contract Manufacturing
$
10,130,597

 
$
9,565,368

 
$
3,100,586

 
$
3,114,482

Power Distribution and Generation
5,695,039

 
3,810,061

 
1,413,117

 
1,479,509

Batteries
9,767,890

 
16,134,215

 
3,118,375

 
4,944,867

Engineering Services and Other
3,797,917

 
5,076,966

 
1,546,497

 
1,794,616

Total Power Division
$
29,391,443

 
$
34,586,610

 
$
9,178,575

 
$
11,333,474

Percentage of Total Recognized Revenue by Type of Arrangement
The table below details the percentage of total recognized revenue by type of arrangement for the nine and three months ended September 30, 2018 and 2017:
 
Nine months ended September 30,
 
Three months ended September 30,
Type of Revenue
2018
 
2017
 
2018
 
2017
Sale of products
95.0
%
 
96.7
%
 
94.5
%
 
97.2
%
Maintenance and support agreements
3.5
%
 
3.3
%
 
3.5
%
 
2.6
%
Long term research and development contracts
1.5
%
 
%
 
2.0
%
 
0.2
%
Total
100
%
 
100
%
 
100
%
 
100
%
Revenue by Contract Type
Revenue by contract type was as follows:
 
Training and
Simulation
Division
 
Power Systems
Division
Nine months ended September 30, 2018
 
 
 
Fixed Price
$
35,975,495

 
$
26,807,005

Cost Reimbursement (Cost Plus)
4,120,987

 
1,822,659

Time and Materials
3,479,671

 
761,779

Total
$
43,576,153

 
$
29,391,443

Nine months ended September 30, 2017
 
 
 
Fixed Price
$
28,849,966

 
$
28,830,143

Cost Reimbursement (Cost Plus)
4,610,512

 
4,203,220

Time and Materials
1,679,491

 
1,553,247

Total
$
35,139,969

 
$
34,586,610

Three months ended September 30, 2018
 
 
 
Fixed Price
$
11,948,500

 
$
8,372,521

Cost Reimbursement (Cost Plus)
1,511,711

 
567,767

Time and Materials
1,205,691

 
238,287

Total
$
14,665,902

 
$
9,178,575

Three months ended September 30, 2017
 
 
 
Fixed Price
$
12,657,859

 
$
9,250,841

Cost Reimbursement (Cost Plus)
1,524,987

 
1,714,584

Time and Materials
414,121

 
368,049

Total
$
14,596,967

 
$
11,333,474

Revenue by Customer
Revenue by customer was as follows:
 
Training and
Simulation
Division
 
Power Systems
Division
Nine months ended September 30, 2018
 
 
 
U.S. Government
 
 
 
Department of Defense (DoD)
$
12,399,861

 
$
2,115,108

Non-DoD
7,655,130

 

Foreign Military Sales (FMS)
2,055,333

 

Total U.S. Government
$
22,110,324

 
$
2,115,108

 
 
 
 
U.S. Commercial
$
16,546,210

 
$
16,159,067

Non-U.S. Government
1,786,538

 
2,003,417

Non-U.S. Commercial
3,133,081

 
9,113,851

Total Revenue
$
43,576,153

 
$
29,391,443

Nine months ended September 30, 2017
 
 
 
U.S. Government
 
 
 
Department of Defense (DoD)
$
7,698,425

 
$
7,166,810

Non-DoD
8,604,167

 

Foreign Military Sales (FMS)
1,128,897

 

Total U.S. Government
17,431,489

 
7,166,810

 
 
 
 
U.S. Commercial
$
13,697,477

 
$
10,603,502

Non-U.S. Government
2,815,271

 
9,014,963

Non-U.S. Commercial
1,195,732

 
7,801,335

Total Revenue
$
35,139,969

 
$
34,586,610

Three months ended September 30, 2018
 
 
 
U.S. Government
 
 
 
Department of Defense (DoD)
$
4,753,006

 
$
772,751

Non-DoD
3,272,251

 

Foreign Military Sales (FMS)
341,933

 

Total U.S. Government
8,367,190

 
772,751

 
 
 
 
U.S. Commercial
$
4,744,148

 
$
4,669,493

Non-U.S. Government
394,091

 
180,253

Non-U.S. Commercial
1,160,473

 
3,556,078

Total Revenue
$
14,665,902

 
$
9,178,575

Three months ended September 30, 2017
 
 
 
U.S. Government
 
 
 
Department of Defense (DoD)
$
3,226,920

 
$
2,715,675

Non-DoD
3,162,425

 

Foreign Military Sales (FMS)
721,353

 

Total U.S. Government
7,110,698

 
2,715,675

 
 
 
 
U.S. Commercial
$
5,765,592

 
$
3,204,902

Non-U.S. Government
1,496,856

 
3,392,865

Non-U.S. Commercial
223,821

 
2,020,032

Total Revenue
$
14,596,967

 
$
11,333,474

Contract Assets and Liabilities
These assets and liabilities are reported on the Consolidated Balance Sheet on a contract-by-contract basis at the end of each reporting period.
 
September 30, 2018
 
December 31, 2017
 
Training and Simulation Division
 
Power Systems
Division
 
Training and Simulation Division
 
Power Systems
Division
Unbilled Receivables – Current
$
9,681,738

 
$
9,867,754

 
$
7,263,461

 
$
8,831,055

Deferred Revenues – Current
(6,061,829
)
 
(452,272
)
 
(5,860,345
)
 
(917,968
)
Net Contract Assets and Liabilities:
$
3,619,909

 
$
9,415,482

 
$
1,403,116

 
$
7,913,087