Quarterly report pursuant to Section 13 or 15(d)

Revenues in Excess of Billings - Long Term

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Revenues in Excess of Billings - Long Term
 3 Months Ended
Sep. 30, 2020
Contractors [Abstract]  
Revenues in Excess of Billings - Long Term

NOTE 9 – REVENUES IN EXCESS OF BILLINGS – LONG TERM

 

Revenues in excess of billings, net consisted of the following:

 

    As of     As of  
    September 30, 2020     June 30, 2020  
             
Revenues in excess of billings - long term   $ -     $ 1,341,575  
Present value discount     -       (41,286 )
Net Balance   $ -     $ 1,300,289  

 

Pursuant to revenue recognition for contract accounting, the Company had recorded revenues in excess of billings long-term for amounts billable after one year. During the three months ended September 30, 2020 and 2019, the Company accreted $14,060 and $13,860, respectively, which was recorded in interest income for that period. The Company used the discounted cash flow method with an interest rate of 4.35%. During the quarter, the long-term amount was reclassified as short term upon meeting the billing criteria.