REVENUE RECOGNITION

3 Months Ended

Mar. 31, 2024

Revenue from Contract with Customer [Abstract]

REVENUE RECOGNITION

21. REVENUE RECOGNITION:

The Company recognizes revenue in accordance with ASC Topic 606, Revenue from Contracts with Customers (Topic 606). The standard establishes the principles that an entity shall apply to report useful information to users of financial statements about the nature, amount, timing, and uncertainty of revenue and cash flows from a contract with a customer.

For the three months ended March 31, 2024 and 2023, the Company recorded 98% and 96%, respectively, of its revenue from OLED related sales and 2% and 4%, respectively, from the providing of services through Adesis.

Contract Balances

The following table provides information about assets and liabilities associated with our contracts from customers (in thousands):

	As of March 31, 2024
Accounts receivable	$	119,584
Short-term unbilled receivables		22,440
Long-term unbilled receivables		10,278
Short-term contract assets		2,747
Long-term contract assets		8,688
Short-term deferred revenue		19,157
Long-term deferred revenue		13,292

Short-term and long-term unbilled receivables and contract assets are classified as other current assets and other assets, respectively, on the Consolidated Balance Sheets. Contract assets represent consideration related to the renewal of customer contracts which is recognized over the contract term based on material units sold. The deferred revenue balance as of March 31, 2024 will be recognized as materials are shipped to customers over the remaining contract periods. As of March 31, 2024, the Company had $35.9 million of backlog associated with committed purchase orders from its customers for phosphorescent emitter material. These orders are anticipated to be fulfilled within the next 90 days.

Significant changes in the assets and liabilities balances associated with the Company's contracts from customers for the three months ended March 31, 2024 and 2023 are as follows (in thousands):

	Three Months Ended March 31, 2024
	Assets			Liabilities
Balance at December 31, 2023	$	42,134		$	(59,719	)
Revenue recognized that was previously included in deferred revenue, net		—			61,095
Increases due to cash received		—			(33,323	)
Cumulative catch-up adjustment arising from changes in estimates of    transaction price, net		—			(502	)
Unbilled receivables recorded, net		2,560			—
Contract assets recorded, net		(541	)		—
Net change		2,019			27,270
Balance at March 31, 2024	$	44,153		$	(32,449	)

	Three Months Ended March 31, 2023
	Assets			Liabilities
Balance at December 31, 2022	$	38,457		$	(63,878	)
Revenue recognized that was previously included in deferred revenue, net		—			41,086
Increases due to cash received		—			(38,153	)
Cumulative catch-up adjustment arising from changes in estimates of    transaction price, net		—			5,683
Unbilled receivables recorded, net		11,878			—
Contract assets recorded, net		(520	)		—
Transferred to receivables from unbilled receivables		(19,983	)		—
Net change		(8,625	)		8,616
Balance at March 31, 2023	$	29,832		$	(55,262	)

The cumulative catch-up adjustment recorded to revenue arising from changes in estimates of transaction price, net was a reduction of $502,000 for three months ended March 31, 2024 as compared to an increase of $5.7 million for the three months ended March 31, 2023. For the three months ended March 31, 2023, the adjustment resulted from an increase in the average price per gram that was primarily due to the decrease in anticipated demand by several of the Company's customers over the remaining lives of their contracts, resulting from changes in global macroeconomic factors.