Revenue

12 Months Ended

Dec. 31, 2023

Revenue from Contract with Customer [Abstract]

Revenue

Note 3 – Revenue

The following table represents a disaggregation of revenue from contracts by end markets for the years ended December 31, 2023 and 2022 (in thousands):

	Year Ended December 31, 2023
	Over time		Point in time		Total
Energy	$	4,901	$	189	$	5,090
Aerospace		3,427		1,469		4,896
Industrial		6,123		2,821		8,944
Research		3,700		1,479		5,179
Total	$	18,151	$	5,958	$	24,109

	Year Ended December 31, 2022
	Over time		Point in time		Total
Energy	$	9,094	$	58	$	9,152
Aerospace		95		1,527		1,622
Industrial		5,961		4,856		10,817
Research		2,807		1,415		4,222
Total	$	17,957	$	7,856	$	25,813

The energy market includes customers involved in the manufacture of silicon carbide wafers and batteries. Aerospace market includes customers that manufacture aircraft engines. Industrial end market consists of various end customers in diverse industries. Research market principally represents customers that are universities and other research institutions.

The Company has unrecognized contract revenue of approximately $16.3 million at December 31, 2023, 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 financial position and results of operations.

CVD EQUIPMENT CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2023 and 2022

Note 3 – Revenue (continued)

Contract assets and contract liabilities on input method type contracts in progress are summarized at December 31 as follows (in thousands):

	2023			2022
Costs incurred on contracts in progress	$	9,500		$	14,390
Estimated earnings		5,083			10,926
		14,583			25,316
Billings to date		(17,553	)		(26,925	)
		(2,970	)		(1,609	)
Deferred revenue related to non-systems contracts		(334	)		(263	)
	$	(3,304	)	$	(1,872	)
Included in accompanying consolidated balance sheets under the following captions (in thousands):
Contract assets	$	1,604		$	2,170
Contract liabilities	$	4,908		$	4,042

Of the contract liability balances at December 31, 2022 and December 31, 2021, $3.7 million and $1.7 million was recognized as revenue during the years ended December 31, 2023 and 2022, respectively. Contract assets at December 31, 2021 were $2.5 million.