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Government Funding
6 Months Ended
Jun. 30, 2020
Government Funding [Abstract]  
Government Funding

Note 12 – Government Funding



On June 11, 2020 the Company announced that it was awarded $5.5 million under the US Department of Defense (“DoD”), IBAS Program for OLED Supply Chain Assurance. These funds are for procurement and installation of capital equipment in eMagin’s NY-based manufacturing facility.



The capital funding of $5.5 million provided during this program will be used to procure key equipment and tooling, and reimburse the Company for certain labor and material costs, which the Company believes will improve all aspects of eMagin’s OLED microdisplay production, including increased throughput and capacity. The IBAS agreement indicated that additional awards might be available, and were subsequently received by the Company as described in Note 13 – Subsequent events.



The Company will recognize the IBAS award as deferred income – government awards as program milestones are invoiced, and will recognize other income as depreciation and other expenditures are incurred over the useful life of the capital equipment. As of June 30, 2020, the Company has invoiced the DOD program for $2.4 million for initial deposits required by capital equipment vendors under this IBAS award. Amounts related to this initial invoice to the DOD are presented on the balance sheet in accounts receivable, other current liability, and deferred income – Government awards – long term. The Company expects to receive the $2.4 million invoiced in August 2020, and place the related down payments to vendors. Additional amounts remaining under this $5.5 million award will be recorded in a similar fashion and will coincide with the progress payments required under the various capital equipment purchase terms.