Revenues and Other Income

9 Months Ended

Sep. 30, 2024

Revenue from Contract with Customer [Abstract]

Revenues and Other Income

 (3) Revenues and Other Income

Revenues are recognized when control of the promised goods is transferred to customers, in an amount that reflects the consideration we expect to receive in exchange for those goods. When our ingredients and finished products are shipped with control being transferred at the shipping point (which we do almost universally) we recognize the related revenue at the time of shipping. In the rare instances when we use FOB destination, we would not recognize revenue until the customer receives the product.

 We generally expense sales commissions when incurred because the amortization period would have been one year or less. These costs are recorded within selling, general and administrative expenses. Customers’ deposits, deferred revenue and other receipts are deferred and recognized when the revenue is realized and earned. Cash payments to customers are classified as reductions of revenue in our statements of operations.

 Contract balances at September 30, 2024, December 31, 2023, and December 31, 2022 are as follows:

	Contract Assets		Contract Liabilities
Balance, December 31, 2022	$	4,734	$	2,188
Balance, December 31, 2023		3,467		2,353
Balance, September 30, 2024		8,732		6,228

Contract assets consist of trade accounts receivable.

Revenue recognized in the reporting period that was included in the contract liability balance at the beginning of the period was $1,279 and $414, for the three months ended September 30, 2024 and 2023, respectively, and $2,882 and $2,438 for the nine months ended September 30, 2024 and 2023, respectively.

Other revenue may include revenue from technology license fees and paid development projects. Technology license fees and paid development projects are recognized over time when the obligations under the agreed upon contractual arrangements are performed on our part.  Other revenue recognized over time was $81 and $212, for the three months ended September 30, 2024 and 2023, respectively, and $301 and $361 for the nine months ended September 30, 2024 and 2023, respectively.