NOTE 4

INSTALLATION CONTRACT

In January 2012 the Company entered into a contract to furnish materials, equipment and supervision as well as labor and other services for installation of a communication system to a regional airport for a total contract price of approximately $234,000 to be completed no later than March 15, 2012.

The Company recorded the revenues associated with the contract in accordance with ASC 605-25 Multiple Element Arrangements. Accordingly, management identified the separate units of accounting for delivered and deliverable items, which included equipment, software, labor and installation fees.  Equipment and software consisted of items sold by the Company in its normal course of business and were recorded at the standard sales price. Labor revenue was recorded at the Company's standard hourly rates. At March 31, 2012, all equipment and software had been delivered to the customer and all necessary labor had been completed.   Total equipment, software and labor revenues recognized were approximately $86,000.

Management determined that the project was substantially complete at March 31, 2012 and on May 2, 2012 received notice from the customer communicating final approval. Retainage of approximately $26,000 was held by the customer in accordance with the terms of the contract and is payable within 10 days of final approval. This amount is included in Prepaid Expenses and Other Current assets at March 31, 2012.