v3.25.1
REVENUE RECOGNITION
 3 Months Ended
Mar. 31, 2025
Revenue from Contract with Customer [Abstract]  
REVENUE RECOGNITION

NOTE 4: REVENUE RECOGNITION

 

The following table represents a disaggregation of revenue for the three months ended March 31, 2025 and 2024 (in thousands):

 

                
   Three months ended March 31, 2025 
    Over time    Point in time    Total 
Energy  $-   $8   $8 
Aerospace   1,839    787    2,626 
Industrial   4,124    407    4,531 
Research   753    398    1,151 
Total  $6,716   $1,600   $8,316 

 

 

NOTE 4: REVENUE RECOGNITION (continued)

 

                
   Three months ended March 31, 2024 
    Over time    Point in time    Total 
Energy  $-   $18   $18 
Aerospace   1,802    332    2,134 
Industrial   1,259    483    1,742 
Research   861    167    1,028 
Total  $3,922   $1,000   $4,922 

 

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

 

The Company has unrecognized contract revenue of approximately $11.2 million at March 31, 2025, which it expects to substantially recognize as revenue over time within the next eighteen 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

 

Contract assets and contract liabilities on input method type contracts in progress are summarized as follows as of March 31, 2025 (in thousands):

 

      
Costs incurred on contracts in progress  $18,456 
Estimated earnings   8,964 
Costs and estimated earnings on uncompleted contracts  $27,420 
Billings to date   (23,557)
Net cost in excess of billings   3,863 

Deferred revenue related to non-system contracts and a system contract to be recognized at point in time

   (515)
Contract liability in excess of contract assets  $3,348 

Included in accompanying condensed consolidated balance sheets under the following captions (in thousands):

     
Contract assets  $5,180 
Contract liabilities  $1,832 

 

Of the contract liability balances at December 31, 2024 and 2023, $1.3 million and $1.3 million was recognized as revenue during the three months ended March 31, 2025 and 2024, respectively. Contract assets and contract liabilities at December 31, 2023 were $1.6 million and $4.9 million, respectively.