Note 4 - Revenue Disaggregation

6 Months Ended

Jun. 30, 2021

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 and six months ended June 30, 2021 and 2020 (in thousands):

	Three Month's Ending June 30, 2021
	Over time		Point in time		Total
Aerospace	$	197	$	577	$	774
Industrial	$	1,226	$	1,293	$	2,519
Research	$	365	$	376	$	741
Total	$	1,788	$	2,246	$	4,034

	Three Month's Ending June 30, 2020
	Over time		Point in time		Total
Aerospace	$	134	$	1,699	$	1,833
Industrial	$	259	$	623	$	882
Research	$	495	$	509	$	1,004
Total	$	888	$	2,831	$	3,719

	Six Month's Ending June 30, 2021
	Over time		Point in time		Total
Aerospace	$	386	$	1,103	$	1,489
Industrial	$	2,595	$	1,968	$	4,563
Research	$	552	$	796	$	1,348
Total	$	3,533	$	3,867	$	7,400

	Six Month's Ending June 30, 2020
	Over time		Point in time		Total
Aerospace	$	1,299	$	3,884	$	5,183
Industrial	$	386	$	1,484	$	1,870
Research	$	1,089	$	1,613	$	2,702
Total	$	2,774	$	6,981	$	9,755

The Company has unrecognized contract revenue of approximately $3.2 million at June 30, 2021, 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 six months ended June 30, 2021 and 2020, the increase in contract assets of approximately $.6 million and $.4 million, respectively, was the result of work performed in excess of billings which are based upon project milestones.

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

	2021
Costs incurred on contracts in progress	$	4,882,600
Estimated earnings		2,900,056
		7,782,656
Billings to date		(7,098,362	)
	$	684,294
Deferred revenue related to non-systems contracts		(618,984	)
		65,310
Included in accompanying balance sheets
Under the following captions:
Contract assets	$	1,066,382
Contract liabilities	$	(1,001,072	)