Note 11 - Contract Balances |
6 Months Ended |
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Jun. 30, 2026 | |
| Notes to Financial Statements | |
| Revenue from Contract with Customer [Text Block] |
11. Contract Balances
Customer contracts may give rise to timing differences between revenue recognition, billings, and cash collections, resulting in the recognition of billed accounts receivable, unbilled receivables (contract assets), or deferred revenue (contract liabilities) within the condensed consolidated balance sheets.
Contract assets primarily consist of unbilled receivables associated with contracts accounted for under the cost-to-cost method of revenue recognition, where revenue recognized based on costs incurred exceeds amounts billed to customers. Contract assets are included in prepaid expenses and other current assets in the condensed consolidated balance sheets. The balance of contract assets was $78,730 and $8,867 as of June 30, 2026, and December 31, 2025, respectively.
Contract liabilities primarily consist of customer deposits that exceed revenue recognized. Contract liabilities are included in other accrued liabilities (for the portion expected to be recognized within twelve months) or long-term deferred revenue (for the portion not expected to be recognized within twelve months) in the condensed consolidated balance sheets, until revenue is recognized. The balance of contract liabilities, excluding the extended warranty deferred revenue balance disclosed in Note 10, was $117,918 and $151,257 as of June 30, 2026, and December 31, 2025, respectively. During the six months ended June 30, 2026, the Company recognized revenue of $90,360 related to amounts included in the December 31, 2025 contract liability balance.
As of June 30, 2026, the aggregate amount of revenue that the Company expects to recognize on remaining performance obligations (excluding extended warranty) was approximately $143,000, of which approximately 80% is expected to be recognized as revenue over the next years. We have applied the practical expedient to exclude the value of remaining performance obligations for contracts with an original term of one year or less.
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