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Deferred Revenue/Costs in Excess of Billings
 9 Months Ended
Mar. 31, 2014
Deferred Revenuecosts In Excess Of Billings  
Deferred Revenue/Costs in Excess of Billings

12. 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 March 31, 2014, the Company invoiced $963,500 and recognized $1,097,030 as revenue to date ($481,000 recognized during fiscal 2013 and $0 during fiscal 2014). The balance of $133,530 is recorded as other receivables. The project is now expected to be completed by June 2014. At March 31, 2014, the Company had $120,000 outstanding in billed accounts receivable outstanding with respect to this purchase order.