
	December 31, 2025		December 31, 2024
Cost incurred on long-term contracts in progress(*)	$	1,249,400	$	1,026,611
Raw materials	1,506,847		1,373,491
Advances to suppliers and subcontractors	404,370		414,626
	3,160,617		2,814,728

Less: Provision for losses on long-term contracts	(30,861)		(41,032)
	$	3,129,756	$	2,773,696

(*) Costs incurred to fulfill a contract in advance of the contract being awarded are included in inventories as work-in-process if the Company determines that those costs relate directly to a contract or to an anticipated contract that can be specifically identified and contract award is probable, the costs generate or enhance resources that will be used in satisfying performance obligations, and the costs are recoverable (referred to as pre-contract costs). Pre-contract costs that are initially capitalized in inventory are generally recognized as cost of revenues consistent with the transfer of control of the products and services to the customer. All other pre-contract costs, including start-up costs, are expensed as incurred. As of December 31, 2025 and 2024 pre-contract costs were included in inventory in the amount of, $118,170 and $167,094, respectively.