CONTRACTS IN PROGESS |
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Apr. 30, 2025 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| CONTRACTS IN PROGESS | NOTE 8 – CONTRACTS IN PROGESS
Costs and estimated earnings in excess of billings on uncompleted contracts represent accumulated project expenses and fees which have not been invoiced to customers as of the balance sheet date. These amounts are stated on the consolidated balance sheets as Unbilled Receivables and as of April 30, 2025 and October 31, 2024, these were $2,370,530 and $1,657,827, respectively.
Deferred Revenue as of April 30, 2025 and October 31, 2024, was $1,877,350 and $1,225,634, respectively, and consist of billings in excess of costs and payments received for future obligations such as supply of products or services or our warranty or Through Life Support (“TLS”) obligations undertaken as part of our contracts.
Sales of equipment include a provision for warranty obligations or TLS services. The contractual components relating to warranty and TLS are treated as deferred revenue over the corresponding period of the Company’s obligations under these deferred arrangements and are amortized over the relevant warranty or TLS period (12 months is our standard warranty contract obligation or for TLS 24, 36 or 60 months, depending on the contract) from the date of sale.
Deferred Revenue (“Current”) includes invoices paid by customers in advance of delivery of products or services contracted, including technical support services to be delivered within twelve months, provision for warranty obligations which may arise in the twelve month period or the current portion of TLS obligations. Deferred Revenue was $1,877,350 and $1,225,634 as of April 30, 2025 and October 31, 2024, respectively.
Deferred Revenue (“Current”) consisted of the following as of April 30, 2025 and October 31, 2024:
Deferred Revenue (“Non-Current”) includes customer prepaid TLS services for the remaining TLS periods,
Deferred Revenue (“Non-Current”) was $27,199 and $56,121 as of April 30, 2025 and October 31, 2024 respectively.
CODA OCTOPUS GROUP, INC. Notes to the Unaudited Consolidated Financial Statements April 30, 2025 and October 31, 2024
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