Note 4 - Revenue Disaggregation

3 Months Ended

Mar. 31, 2020

Notes to Financial Statements

Revenue from Contract with Customer [Text Block]

NOTE

4:

     REVENUE DISAGGREGATION

The following table represents a disaggregation of revenue for the

three

months ended

March 31, 2020

and

2019

(in thousands):

	Three Months Ended March 31, 2020
	Over time		Point in time		Total
Aerospace	$	1,187	$	2,296	$	3,483
Industrial	$	520	$	262	$	782
Research	$	1,687	$	84	$	1,771
Total	$	3,394	$	2,642	$	6,036

	Three Months Ended March 31, 2019
	Over time		Point in time		Total
Aerospace	$	247	$	745	$	992
Industrial	$	1,365	$	68	$	1,433
Research	$	1,017	$	27	$	1,044
Total	$	2,629	$	840	$	3,469

The Company has unrecognized contract revenue of approximately

$1.2

million at

March 31, 2020,

which it expects to recognize as revenue within the next

twelve

months.

Judgment is required to evaluate assumptions including the amount of net contract revenues and the total estimated costs to determine our progress towards contract completion and to calculate the corresponding amount of revenue to recognize.

Changes in estimates for sales of systems occur for a variety of reasons, including but

not

limited to (i) build accelerations or delays, (ii) product cost forecast changes, (iii) cost related change orders or add-ons, or (iv) changes in other information used to estimate costs. Changes in estimates

may

have a material effect on the Company’s consolidated statements of operations.

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.

During the

three

months ended

March 31, 2020

and

2019,

the increase (decrease) in contract assets of approximately

$1.2

million and (

$.3

million), respectively, was primarily caused by the timing of unbilled and billed receivables during the period, for those projects that certain milestones have or have

not

been reached. During the

three

months ended

March 31, 2020

and

2019,

the (decrease) increase in contract liabilities of (

$.7

million) and

$.2

million, respectively, was primarily due to timing of invoicing for those projects.