Note 4 - Revenue Disaggregation

3 Months Ended

Mar. 31, 2022

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, 2022 and 2021 (in thousands):

	Three Month's Ending March 31, 2022
	Over time		Point in time		Total
Aerospace	$	-	$	705	$	705
Energy, storage and transmission	$	899	$	7	$	906
Industrial	$	997	$	872	$	1,869
Research	$	706	$	470	$	1,176
Total	$	2,602	$	2,054	$	4,656

	Three Month's Ending March 31, 2021
	Over time		Point in time		Total
Aerospace	$	189	$	526	$	715
Energy, storage and transmission	$	-	$	-	$	-
Industrial	$	1,369	$	675	$	2,044
Research	$	187	$	420	$	607
Total	$	1,745	$	1,621	$	3,366

The Company has unrecognized contract revenue of approximately $6.2 million at March 31, 2022, 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 consist of (i) retainage which represents 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, 2022 and 2021, the increase in contract assets of approximately $.2 million and $.5 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:

	2022
Costs incurred on contracts in progress	$	6,878,958
Estimated earnings		4,792,589
		11,671,547
Billings to date		(9,510,318	)
	$	2,161,229
Deferred revenue related to non-systems contracts		(163,791	)
		1,997,438
Included in accompanying balance sheets
Under the following captions:
Contract assets	$	2,717,823
Contract liabilities	$	(720,385	)