This excerpt taken from the APSG 8-K filed Sep 14, 2005.
DTI recognizes revenue on its fixed-priced contracts under the percentage-of-completion method determined by the ratio of costs incurred to management’s estimate of total anticipated costs. Revenue under cost reimbursable contracts is recorded as costs are incurred and includes estimated fees recognized in proportion of costs incurred to date to management’s estimate of total anticipated costs. Provisions for anticipated losses, if any, are made in the period in which they become determinable.
Substantially, all of DTI’s revenue is derived from contracts with various U.S. government agencies and contractors.
DTI had accounts receivable – contracts, of $2,351,087 at July 1, 2005, which were substantially all from U.S. government contracts. Also included in this balance were recoverable costs and accrued profit on progress completed and not billed, including retentions pending government audit of $1,228,671. Completion of government audits will enable DTI to close the completed contracts.