1. Caswell Industries
Revenues
We are evaluatingmarketsforourcurrentand future products.Priorto the fourthquarterof 2015, we
increasedthe percentage of ourrevenuesfromcontractswithgovernmententities.While we sawan
increase inourrevenue percentage fromgovernmentcontracts,we maintainedand,insome quarters,
exceededourprojectsonrevenue percentagesfromdomesticandforeignsales.
Research and Development
Our cost of researchand developmentconsistsprimarilyof the costof compensationandbenefitsfor
researchand supportstaff,aswell asmaterialsandsuppliesusedinthe engineeringdesignand
developmentprocess.These costsdecreasedsignificantlyduring2015 as we focusedonreducingour
expenditure rate byreducingproduct designanddevelopmentactivities.
Preferred Stock Dividends
Priorto our initial publicofferingof ourcommonstock,we had variousclassesof preferredstock
outstanding,eachof whichwasentitledtoreceivedividends.We accrueddividendexpensesmonthly
accordingto the requirementsof each classof preferredstock.