Annual report pursuant to Section 13 and 15(d)

SIGNIFICANT ACCOUNTING POLICIES (Tables)

v3.10.0.1
SIGNIFICANT ACCOUNTING POLICIES (Tables)
12 Months Ended
Dec. 31, 2018
Accounting Policies [Abstract]  
Estimated Useful Lives
Depreciation is calculated by the straight-line method over the following estimated useful lives of the assets:
 
Depreciable life (in years)
 
 
Computers and related equipment
3 to 5
Motor vehicles
5 to 7
Office furniture and equipment
3 to 5
Machinery, equipment and installations
5 to 10
Buildings
30
Land
Not depreciated
Leasehold improvements
Shorter of the term of the lease or the life of the asset
Demo inventory
3 to 5
Contracts
 
December 31, 2018
 
December 31, 2017
 
Training and Simulation Division
 
Power Systems
Division
 
Total
 
Training and Simulation Division
 
Power Systems
Division
 
Total
Contract Assets - Current
$
10,358,679

 
$
7,509,217

 
$
17,867,896

 
$
7,263,461

 
$
8,831,054

 
$
16,094,515

Contract Liabilities - Current
(6,697,522
)
 
(357,257
)
 
(7,054,779
)
 
(5,860,345
)
 
(917,968
)
 
(6,778,313
)
Net Contract Assets and Liabilities:
$
3,661,157

 
$
7,151,960

 
$
10,813,117

 
$
1,403,116

 
$
7,913,086

 
$
9,316,202

The aggregate impact of adjustments in contract estimates to net income (loss) is presented below:
 
Twelve months ended December 31,
 
2018
 
2017
 
2016
 
Training and Simulation Division
 
Power Systems Division
 
Training and Simulation Division
 
Power Systems Division
 
Training and Simulation Division
 
Power Systems Division
Net income (loss)
$
659,037

 
$
656,665

 
$
955,022

 
$
40,888

 
$
1,856,664

 
$
(57,384
)
Disaggregation of Revenue
Revenue by customer was as follows:
 
Training and
Simulation
Division
 
Power Systems
Division
Twelve months ended December 31, 2018
 
 
 
U.S. Government
 
 
 
Department of Defense (DoD)
$
16,862,856

 
$
3,292,382

Non-DoD
11,699,696

 

Foreign Military Sales (FMS)
2,066,140

 

Total U.S. Government
$
30,628,692

 
$
3,292,382

 
 
 
 
U.S. Commercial
$
19,889,962

 
$
20,542,135

Non-U.S. Government
2,185,308

 
2,345,653

Non-U.S. Commercial
4,004,208

 
13,711,401

Total Revenue
$
56,708,170

 
$
39,891,571

Twelve months ended December 31, 2017
 
 
 
U.S. Government
 
 
 
Department of Defense (DoD)
$
11,056,632

 
$
9,149,874

Non-DoD
11,787,913

 

Foreign Military Sales (FMS)
2,511,023

 

Total U.S. Government
25,355,568

 
9,149,874

 
 
 
 
U.S. Commercial
$
18,895,558

 
$
16,712,654

Non-U.S. Government
3,673,960

 
12,515,981

Non-U.S. Commercial
2,329,238

 
10,089,845

Total Revenue
$
50,254,324

 
$
48,468,354

Twelve months ended December 31, 2016
 
 
 
U.S. Government
 
 
 
Department of Defense (DoD)
$
16,720,606

 
$
11,480,240

Non-DoD
8,908,207

 

Foreign Military Sales (FMS)
1,796,747

 

Total U.S. Government
27,425,560

 
11,480,240

 
 
 
 
U.S. Commercial
$
16,480,123

 
$
16,615,821

Non-U.S. Government
1,868,232

 
7,003,558

Non-U.S. Commercial
584,879

 
11,517,339

Total Revenue
$
46,358,794

 
$
46,616,958

Revenue by major product line was as follows:
 
Twelve months ended December 31,
 
2018
 
2017
 
2016
Product Revenue
 
 
 
 
 
Air Warfare Simulation
$
16,864,956

 
$
19,231,716

 
$
19,277,541

Vehicle Simulation
21,650,797

 
13,709,762

 
16,598,942

Use-of-Force
14,652,486

 
14,125,824

 
9,114,910

Service Revenue
 
 
 
 
 
Warranty
3,539,931

 
3,187,022

 
1,367,401

Total Training and Simulation Division
$
56,708,170

 
$
50,254,324

 
$
46,358,794

 
 
 
 
 
 
Contract Manufacturing
$
15,120,054

 
$
13,544,017

 
$
17,498,310

Power Distribution and Generation
6,007,668

 
6,948,704

 
4,687,285

Batteries
13,393,716

 
21,537,381

 
19,233,660

Engineering Services and Other
5,370,133

 
6,438,252

 
5,197,703

Total Power Division
$
39,891,571

 
$
48,468,354

 
$
46,616,958

The table below details the percentage of total recognized revenue by type of arrangement as of December 31, 2018, 2017, and 2016:
 
Twelve months ended December 31,
Type of Revenue
2018
 
2017
 
2016
Sale of products
94.3
%
 
96.2
%
 
95.3
%
Maintenance and support agreements
3.7
%
 
3.2
%
 
4.3
%
Long term research and development contracts
2.0
%
 
0.6
%
 
0.4
%
Total
100
%
 
100
%
 
100
%
Revenue by contract type was as follows:
 
Training and
Simulation
Division
 
Power Systems
Division
Twelve months ended December 31, 2018
 
 
 
Fixed Price
$
46,789,332

 
$
35,865,009

Cost Reimbursement (Cost Plus)
5,269,145

 
2,929,892

Time and Materials
4,649,693

 
1,096,670

Total
$
56,708,170

 
$
39,891,571

Twelve months ended December 31, 2017
 
 
 
Fixed Price
$
42,042,646

 
$
40,826,800

Cost Reimbursement (Cost Plus)
5,721,623

 
5,992,567

Time and Materials
2,490,055

 
1,648,987

Total
$
50,254,324

 
$
48,468,354

Twelve months ended December 31, 2016
 
 
 
Fixed Price
$
36,804,593

 
$
37,082,800

Cost Reimbursement (Cost Plus)
5,869,540

 
6,448,385

Time and Materials
3,684,661

 
3,085,773

Total
$
46,358,794

 
$
46,616,958