Business Description
Prior to October 3, 2014, the company engaged in the design, development and
manufacture of applied energy systems for military and commercial applications
and Ultra Short Pulse lasers and high voltage lasers for commercial applications.
This technology is currently available to potential users.
Revenue has been derived from ongoing contract work for systems development,
effects testing and the design and development of demonstration systems and
sub-systems for our Government and commercial customers. This work is expected
to be generally performed under cost-plus contracts with Government customers.
Revenue under long-term Government contracts is generally recorded under the
percentage of completion method. Revenue, billable monthly, under cost plus
fixed fee contracts is recorded as costs are incurred and includes estimated
earned fees in the proportion that costs incurred to date bear to total estimated
costs. Costs include direct labor, direct materials, subcontractor costs and
overhead. General and administrative expenses allowable under the terms of the
contracts are allocated per contract depending on its direct labor and material
proportion to total direct labor and material of all contracts. As contracts
can extend over one or more accounting periods, revisions in earnings estimated
during the course of work are reflected during the accounting period in which
the facts become known. When the current contract estimate indicates a loss,
a provision is made for the total anticipated loss in the period in which the
facts become known. Management evaluates many variables and makes various assumptions
related to the estimation of total cost of completion of long-term contracts.
Management reviews the progress and performance of all contracts monthly.
Revenue for other products and services is recognized when such products and
services are delivered or performed and, in connection with certain sales to
certain customers, when the products and services are accepted, which is normally
negotiated as part of the initial contract. Revenue from commercial, non-Governmental
customers has historically been based on fixed price contracts where the sale
is recognized upon acceptance of the product or performance of the service and
when payment is probable. Contract costs are accumulated in the same manner
as inventory costs and are charged to operations as the related revenue from
contract is recognized. When the current contract estimate indicates a loss,
a provision is made for the total anticipated loss in the period in which the
facts become known.
