Long-term contracts - Note 3

12 Months Ended

Dec. 31, 2014

Notes to Financial Statements

Long-term contracts - Note 3

3. Long-term contracts

In October 2014, we entered into a $1.5 million agreement for display module support services as part of the production readiness and commercialization of our PicoP® display technology into products being developed by a prominent electronics company. Based on the terms of this agreement, we will recognize contract revenue under the completed-contract method.

In March 2013, we entered into a $4.6 million collaborative research and development agreement with a prominent electronics company to incorporate our PicoP® display technology into a display module that would enable a variety of new products. As of September 30, 2014, we had completed all deliverables and obligations under the collaborative research and development agreement and have recognized the full contract value of $4.6 million.

The following table summarizes the costs incurred on our collaborative research and development agreements and revenue contracts (in thousands):

		December 31,
		2014		2013
Costs and estimated earnings incurred on uncompleted contracts	$	314	$	2,909
Billings on uncompleted contracts		(544)		(3,589)
	$	(230)	$	(680)
Included in accompanying consolidated balance sheets under the following captions:
Billings on uncompleted contracts in excess of
related costs	$	(230)	$	(680)
	$	(230)	$	(680)