Accounts Receivable/Advances on Contracts in Progress

3 Months Ended

Mar. 31, 2013

Accounts Receivable and Advances on Contracts in Progress [Abstract]

Accounts Receivables and Advances on Contracts in Progress [Text Block]

Accounts Receivable/Advances on Contracts in Progress

Net accounts receivable, trade and advances on contracts in progress consists of the following:

(in thousands)	March 31, 2013			December 31, 2012
Amounts billed	$	1,392		$	1,927
Accrued revenue	136			238
	1,528			2,165
Less:  Allowance for doubtful accounts	(28		)	(28		)
Net accounts receivable - trade	$	1,500		$	2,137
Advances on contracts in progress	$	937		$	1,037

Accrued revenue represents revenues recognized on contracts for which billings have not been presented to customers as of the balance sheet date. These amounts are billed and generally collected within one year.

The Company maintains allowances for doubtful accounts for estimated losses resulting from the inability of its customers to pay amounts due. The Company actively pursues collection of past due receivables as the circumstances warrant. Customers are contacted to determine the status of payment and senior accounting and operations management are included in these efforts as is deemed necessary. A specific reserve will be established for past due accounts when it is probable that a loss has been incurred and the Company can reasonably estimate the amount of the loss. The Company does not record an allowance for government receivables and invoices backed by letters of credit as collection is reasonably assured. Bad debts are written off against the allowance when identified. There is no dollar threshold for account balance write-offs. While rare, a write-off is only recorded when all efforts to collect the receivable have been exhausted.

Advances on contracts in progress represent billings that have been presented to the customer, as either deposits or progress payments against future shipments, but revenue has not been recognized.