v3.26.1
NET SALES
 3 Months Ended
Mar. 31, 2026
Revenue from Contract with Customer [Abstract]  
NET SALES

NOTE 3. NET SALES

 

Revenue Recognition

 

Revenue under contract manufacturing agreements that was recognized over time, excluding noncash consideration, accounted for 75% and 74% of net sales for the three months ended March 31, 2026 and 2025, respectively. The following tables summarize our net sales by market for the three months ended March 31, 2026 and 2025, respectively:

  

                 
   Three Months Ended March 31, 2026 
  

Product/ Service Transferred

Over Time

  

Product Transferred at Point

in Time

   Noncash Consideration1   Total Net Sales by Market 
Medical Device  $6,679   $1,490   $742   $8,911 
Medical Imaging   8,006    1,867    3    9,876 
Industrial   3,689    3,018    175    6,882 
Aerospace and Defense   4,254    356    37    4,647 
Total net sales  $22,628   $6,731   $957   $30,316 

 

             
   Three Months Ended March 31, 2025 
  

Product/ Service Transferred

Over Time

  

Product Transferred at Point

in Time

  

Noncash

Consideration1

   Total Net Sales by Market 
Medical Device  $5,772   $1,730   $568   $8,070 
Medical Imaging   6,708    1,873    7    8,588 
Industrial   4,706    2,132    107    6,945 
Aerospace and Defense   2,782    478    32    3,292 
Total net sales  $19,968   $6,213   $714   $26,895 

 

1 Noncash consideration represents material provided by the customer used in the manufacturing of the product.

 

 

Contract Assets

 

Contract assets, recorded in the condensed consolidated balance sheets, consist of unbilled amounts related to revenue recognized over time. Significant changes in the contract assets balance during the three months ended March 31, 2026 were as follows:

  

Balance as of December 31, 2025  $15,184 
Increase (decrease) attributed to:     
Amounts transferred over time to contract assets   22,628 
Allowance for current expected credit losses   - 
Amounts invoiced during the period   (21,802)
Balance outstanding as of March 31, 2026  $16,010 

 

We expect substantially all the remaining performance obligations for the contract assets recorded as of March 31, 2026 to be transferred to receivables within 90 days, with any remaining amounts to be transferred within 180 days. We bill our customers upon shipment with payment terms of up to 120 days.

 

Contract Liabilities

 

Contract liabilities, recorded as customer deposits, were $4,672 and $5,386 at March 31, 2026 and December 31, 2025, respectively. Contract liabilities primarily relate to customer prepayments, generally to purchase customer-specific inventory, and billings in advance of the Company satisfying its performance obligations. Revenue recognized during the three months ended March 31, 2026 that was included in the contract liability balance at January 1, 2026 was $565. Changes between periods represent the timing of customer deposits and the satisfaction of performance obligations.