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 June 30, 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, and received the retainage deposit of $26,000 in May 2012.