Revenue Recognition |
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| Revenue Recognition [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| REVENUE RECOGNITION | 6. REVENUE RECOGNITION
In general, the Company recognizes revenue at the point in time control transfers to its customer based on predetermined shipping terms. Revenue is recognized over time under certain contracts for highly customized products that have no alternative use and in which the contract specifies the Company has enforceable right to payment for its costs, plus a reasonable margin. For products recognized over time, the transfer of control is measured using the input method, which measures progress toward completion as costs are incurred based upon estimates of costs to complete such contracts. Losses on contracts are fully recognized in the period in which the losses become determinable. Revisions in profit estimates are reflected on a cumulative basis in the period in which the basis for such revision becomes known.
Disaggregation of Revenue
The following tables disaggregate the Company’s revenue by timing and by geographic location for the three months ended April 3, 2026 and March 31, 2025:
Contract Balances from Contracts with Customers
The Company records contract assets or contract liabilities on a contract-by-contract basis. The Company’s accounts receivable, contract assets and contract liabilities are summarized below:
The increase in unbilled revenue for the three months ended April 3, 2026 reflects the net effect of revenue recognized in excess of billings during the period. The increase in deferred revenue during the three months ended April 3, 2026 reflects the impact of billings in excess of revenue recognized in the period.
During the three months ended April 3, 2026 and March 31, 2025, the Company recognized revenue of approximately $4.1 million and $2.6 million that was included in the contract liabilities as of December 31, 2025 and December 31, 2024, respectively. There was no revenue recognized during the three months ended April 3, 2026 and March 31, 2025 for performance obligations satisfied in prior periods.
The Company did not recognize impairment losses on its contract assets during the three months ended April 3, 2026 or March 31, 2025. |
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