Brooks Freund - Laserfiche WebLink

Home Browse Search

NOTE 9. RELATED PARTY TRANSACTIONS (Continued) Rent expense on the office facility lease amounted to approximately $169,000 and $ 175,000 for the years ended December 3 1,2009 and 2008, respectively. NOTE 10. COMMITMENTS AND CONTINGENCIES Warranties The Company, in its normal course of business, provides a one-year warranty covering materials and workmanship. The Company's policy is to expense costs in connection with this warranty in the period such costs are incurred. In the opinion of management, based upon prior experience, future warranty costs, if any, are not anticipated to be significant. Contingencies In the normal course of business the Company is subject to various litigation and arbitration matters, some of which are expected to be covered by liability insurance. Although the effects of these matters cannot be determined, management believes that their ultimate outcome will not have a significant adverse effect on the financial condition or results of operations of the Company. Other The Company may be party to certain contracts which contain provisions for payment of damages upon late completion of the contracts. It is management's opinion that these amounts, if any, are not material at December 3 I, 2009. NOTE 11. BACKLOG The Company expects to realize revenue from work to be performed on contracts in progress at year-end and from contractual agreements for which work has not commenced. Estimated future revenue from the Company's backlog consisted of the following: Contracts in progress at December 3 I, 2009 Less: revenue recognized through December 3 I, 2009 Contracts executed in 2009 but not in progress Contracts executed subsequent to December 3 I, 2009 $ 74,532,000 ( 54,689,000) 1,65 I ,000 20,558,000 $ 42,052,000 NOTE 12. SUBSEQUENT EVENTS The Company has evaluated subsequent events through April 29, 2010, which is the date the accompanying financial statements were available to be issued. I I