Note 4 - Revenue Disaggregation

9 Months Ended

Sep. 30, 2022

Notes to Financial Statements

Revenue from Contract with Customer [Text Block]

NOTE 4: REVENUE RECOGNITION

The following table represents a disaggregation of revenue for the three and nine months ended September 30, 2022 and 2021 (in thousands):

	Three months ended September 30, 2022
	Over time		Point in time		Total
Aerospace	$	-	$	154	$	154
Energy, storage and transmission		3,791		25		3,816
Industrial		1,653		1,153		2,806
Research		827		516		1,343
Total	$	6,271	$	1,848	$	8,119

	Three months ended September 30, 2021
	Over time		Point in time		Total
Aerospace	$	-	$	574	$	574
Energy, storage and transmission		-		-		-
Industrial		1,551		1,205		2,756
Research		612		388		1,000
Total	$	2,163	$	2,167	$	4,330

	Nine months ended September 30, 2022
	Over time		Point in time		Total
Aerospace	$	-	$	1,375	$	1,375
Energy, storage and transmission		6,714		49		6,763
Industrial		4,099		3,197		7,296
Research		1,832		1,313		3,145
Total	$	12,645	$	5,934	$	18,579

	Nine months ended September 30, 2021
	Over time		Point in time		Total
Aerospace	$	386	$	1,677	$	2,063
Energy, storage and transmission		-		-		-
Industrial		4,147		3,173		7,320
Research		1,164		1,183		2,347
Total	$	5,697	$	6,033	$	11,730

The Company has unrecognized contract revenue of approximately $9.8 million at September 30, 2022, which it expects to substantially 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 may 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

During the nine months ended September 30, 2022 and 2021, the increase in contract assets of approximately $.6 million and $1.1 million, respectively, was the result of work performed in excess of billings which are based upon contract milestones.

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

	2022
Costs incurred on contracts in progress	$	11,921,048
Estimated earnings		8,530,639
		20,451,687
Billings to date		(18,548,776	)
		1,902,911
Deferred revenue related to non-system contracts		(228,336	)
	$	1,674,575
Included in accompanying condensed consolidated balance sheets under the following captions:
Contract assets	$	3,152,469
Contract liabilities	$	(1,477,894	)