Note 4 - Revenue

3 Months Ended

Dec. 26, 2020

Notes to Financial Statements

Revenue from Contract with Customer [Text Block]

NOTE 4. Revenue

The following table presents the Company's revenues disaggregated by revenue type for the

first

three

months of fiscal

2021

and

2020.

Revenue type:

	2021		2020
Engineering services	$	-	$	408,824
Equipment sales		166,925		257,101
Total	$	166,925	$	665,925

Engineering services revenue consists of funded research and development and technology development for commercial companies and government agencies primarily under fixed-price contracts. The Company also derives revenue from developing and designing custom cryptographic solutions for customers' unique secure voice, data and video communications requirements and integrating such solutions into existing systems. These contracts can vary but typically call for fixed monthly payments or payments due upon meeting certain milestones. Customers are billed monthly or upon achieving the milestone and payments are due on a net basis after the billing date.

Equipment sales revenue consists of sales of communications security equipment for voice, data, facsimile and video networks for military, government and corporate/industrial applications. Equipment sales are billed to the customer upon shipment with typical payment terms requiring a down payment at the time of order with the balance due prior to shipment. For government and certain long term customers, we

may

grant net payment terms.