Note 4 – Revenue Recognition

All of the Company’s revenues are earned from contracts with customers and are classified as either Product or Contract revenues. Contracts include written agreements and purchase orders, as well as arrangements that are implied by customary practices or law.

Disaggregation of Revenue

The Company sells products directly to military contractors and OEM’s and they use our displays in a diverse range of applications encompassing the military, and commercial, including medical and industrial, market sectors. Revenues are classified as either military, commercial, consumer or multiple based on management’s knowledge of the customer’s products and markets served by displays or the R&D contract work. Revenues classified as Multiple are for sales to customers that incorporate the Company’s displays in products that could be used for either Military or Commercial applications. R&D activities are performed for both military customers and U.S. Government defense related agencies and consumer companies. Product and Contract revenues are disclosed on the Consolidated Statements of Operations.

Additional disaggregated revenue information for the years ended December 31, 2019 and 2018 were as follows (in thousands):



	Twelve Months Ended
	December 31,
	2019		2018
North and South America	$	14,566	$	13,969
Europe, Middle East, and Africa		11,112		9,157
Asia Pacific		1,048		3,109
Total	$	26,726	$	26,235


	Twelve Months Ended
	December 31,
	2019		2018
Military	65	%	75	%
Commercial, including industrial and medical	12	%	10	%
Consumer	4	%	6	%
Multiple	19	%	9	%
	100	%	100	%

Accounts Receivable from Customers

Accounts receivable, net of allowances, associated with revenue from customers were approximately $4.0 million and $3.2 million as of December 31, 2019 and 2018, respectively.

Contract Assets and Liabilities

Unbilled Accounts Receivables (Contract Assets) - Pursuant to the over time revenue recognition model, revenue may be recognized prior to the customer being invoiced. An unbilled accounts receivable is recorded to reflect revenue that is recognized when the proportional performance method is applied and such revenue exceeds the amount invoiced to the customer. Unbilled receivables are disclosed on the Consolidated Balance Sheet as of December 31, 2019 and 2018.

Customer Advances and Deposits (Contract Liabilities)

The Company recognizes a contract liability when it has billed and received consideration from the customer pursuant to the terms of a contract but has not yet recognized the related revenue. These billings in excess of revenue are classified as deferred revenue on the Consolidated Statements of Operations.

Total contract assets and liabilities consisted of the following amounts (in thousands):


	December 31,		December 31,
		2019		2018
Unbilled Receivables (contract assets)	$	155	$	224

Deferred Revenue (contract liabilities)	$	(277)	$	(38)

During the years ended December 31, 2019 and 2018, the Company recognized $0.2 million and $0.7 million of revenue related to its contract liabilities that existed at December 31, 2018 and 2017, respectively.

Remaining Performance Obligations.

The Company has elected the practical expedient, which allows disclosure of remaining performance obligations only for contracts with an original duration of greater than one year. Such remaining performance obligations primarily relate to engineering and design services. As of December 31, 2019 and 2018, the aggregate amount of the transaction price allocated to remaining performance obligations was $1.4 million and $1.1 million. The Company expects to recognize revenue on all of its remaining performance obligations over the next 12 months.