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Revenue Recognition
 9 Months Ended
Sep. 30, 2021
Revenue from Contract with Customer [Abstract]  
Revenue Recognition Revenue Recognition
Disaggregation of Revenue

We disaggregate our revenue from contracts with customers by geographic locations, customer type, contract type, timing of recognition, and major categories for each of our segments, as we believe it best depicts how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors. We disaggregate revenue on the basis of where the physical goods are shipped. We also classify revenue by the customer type of entity for which it does business, which is an indicator of the diversity of our client base. We attribute revenues generated from being a subcontractor to a commercial company as government revenue when the ultimate client is a government agency or department. Disaggregation by contract mix provides insight in terms of the degree of performance risk that we have assumed. Fixed-price contracts are considered to provide the highest amount of performance risk as we are required to deliver a scope of work or level of effort for a negotiated fixed price. Cost-based contracts are considered to provide the lowest amount of performance risk since we are generally reimbursed for all contract costs incurred in performance of contract deliverables with only the amount of incentive or award fees (if applicable) dependent on the achievement of negotiated performance requirements. By classifying revenue by major product and service, we attribute revenue from a client to the major product or service that we believe to be the client's primary market.
The details are listed in the table below for the three and nine months ended September 30, 2021 and 2020:

Three Months Ended September 30,Nine Months Ended September 30,
(in thousands)2021202020212020
(unaudited)(unaudited)
Total Revenue by Geographic Location
United States$11,555 $8,729 33,670 21,622 
Asia3,390 4,532 10,658 11,857 
Europe3,628 1,694 12,114 5,261 
Canada, Central and South America1,756 319 6,849 782 
All Others— 76 — 315 
Total$20,329 $15,350 $63,291 $39,837 
Total Revenue by Major Customer Type
Sales to the U.S. government$2,713 $2,599 7,629 6,119 
U.S. direct commercial sales and other8,444 6,130 25,642 15,503 
Foreign commercial sales & other9,172 6,621 30,020 18,215 
Total$20,329 $15,350 $63,291 $39,837 
Total Revenue by Contract Type
Fixed-price contracts$19,745 $14,717 60,882 37,667 
Cost-type contracts584 633 2,409 2,170 
  Total$20,329 $15,350 $63,291 $39,837 
Total Revenue by Timing of Recognition
Goods transferred at a point in time$17,106 $12,987 52,044 34,023 
Goods/services transferred over time3,223 2,363 11,247 5,814 
Total$20,329 $15,350 $63,291 $39,837 
Total Revenue by Major Products/Services
Technology development$1,461 $2,040 5,629 5,275 
Test, measurement and sensing systems18,253 12,987 56,255 34,023 
Other615 323 1,407 539 
Total$20,329 $15,350 $63,291 $39,837 


Contract Balances

Our contract assets consist of unbilled amounts for technology development contracts as well as custom product contracts. Also included in contract assets are royalty revenue and carrying amounts of right of return inventory. Contract liabilities include excess billings, subcontractor accruals, warranty expense, extended warranty revenue, right of return refund, and customer deposits.
The following table shows the components of our contract balances as of September 30, 2021 and December 31, 2020:

(in thousands)September 30, 2021December 31, 2020
Contract assets$2,883 $4,139 
Contract liabilities4,967 6,698 
   Net contract assets$(2,084)$(2,559)
Performance Obligations
Unfulfilled performance obligations represent amounts expected to be earned on executed contracts. Indefinite delivery and quantity contracts and unexercised options are not reported in total unfulfilled performance obligations. Unfulfilled performance obligations include funded obligations, which is the amount for which money has been directly authorized by the U.S. government and for which a purchase order has been received by a commercial customer, and unfunded obligations represent firm orders for which funding has not yet been appropriated. The approximate value of our Lightwave segment's unfulfilled performance obligations was $38.6 million at September 30, 2021. We expect to satisfy 36% of the performance obligations in 2021, 56% in 2022 and the remainder by 2025.