Note 3 - Contracts in Progress

12 Months Ended

Dec. 31, 2019

Notes to Financial Statements

Revenue from Contract with Customer [Text Block]

Note

3

–

Contracts in Progress

The following table represents a disaggregation of revenue from contracts for the years ended

December 31, 2019

and

December 31, 2018:

(In thousands)	201 9		201 8
Category
Aerospace	$	4,937	$	8,115
Industrial		4,933		7,043
Research		3,114		4,114
Point in time		6,663		5,062
Total revenue	$	19,647	$	24,334

Contract Assets and Liabilities

Contract assets consist of (i) retainage which represent the earned, but unbilled, portion for which payment is deferred by the customer until certain contractual milestones are met; and (ii) unbilled receivables which represent revenue that has been recognized in advance of billing the customer, which is common for long-term contracts. Contract liabilities consist of customer advances and billings in excess of revenue recognized.

For the year ended

December 31, 2019,

the decrease in contract assets of approximately

$.8

million was primarily driven by additional billed receivables during the period, for those projects that certain milestones had been reached. During the year ended

December 31, 2019,

the increase in contract liabilities of

$.3

million was primarily due to invoicing for those projects.

Contract assets and contract liabilities on input method type contracts in progress are summarized as follows:

	2019			2018
Costs incurred on contracts in progress	$	6,943,067		$	24,913,254
Estimated earnings		3,370,032			26,040,219
		10,313,099			50,953,473
Billings to date		(10,645,800	)		(50,132,200	)
	$	(332,701	)	$	821,273
Included in accompanying balance sheets
Under the following captions:
Contract assets	$	512,952		$	1,357,797
Contract liabilities	$	(845,653	)	$	(536,524	)

The Company has unrecognized contract revenue of approximately

$3.6

million at

December 31, 2019,

which it expects to recognized as revenue within the next

twelve

months.