Note 5. – Revenues, Trade Accounts Receivable, Contract Assets and Contract Liabilities

Disaggregation of Total Net Sales

The Company disaggregates its sales with customers by revenue recognition method for its 1only segment, as the Company believes these factors affect nature, amount, timing and uncertainty of the Company’s revenue and cash flows.

Schedule of Disaggregation by Revenue 

The following table presents revenues broken down by geographical location:

Schedule of Geographic Information 

The following table presents revenues broken down by market:

Schedule of Revenues Distribution By End Market 

Trade Accounts Receivable

In the ordinary course of business, we extend credit to customers on a generally non-collateralized basis. The Company maintains an allowance for expected credit losses which is based on management’s assessments of the amount which may become uncollectible in the future and is determined through consideration of our write-off history, specific identification of uncollectible accounts based in part on the customer’s past due balance (based on contractual terms), and consideration of prevailing economic and industry conditions. Uncollectible accounts are written off after repeated attempts to collect from the customer have been unsuccessful.

Trade accounts receivable consists of the following:

Schedule of Trade Accounts Receivable 

The changes in the allowance for credit losses for the six months ended June 30, 2026, are:

Schedule of Changes in Allowance for Doubtful Accounts Receivable 

Contract Assets and Liabilities

Contract assets represent accumulated incurred costs and earned profits on contracts with customers that have been recorded as sales but have not been billed to customers and are classified as current. In addition, a portion of the amounts billed on certain fixed price contracts that are withheld by the customer as a retainage until a final good receipt of the complete project to the customers satisfaction. Contract liabilities consist of advance payments and billings in excess of costs incurred and deferred revenue, and represent amounts received in excess of sales recognized on contracts. The Company classifies advance payments and billings in excess of costs incurred as current, and deferred revenue as current or non-current based on the expected timing of sales recognition. Contract assets and contract liabilities are determined on a contract-by-contract basis at the end of each reporting period. The non-current portion of contract liabilities is included in long-term liabilities in the Company’s condensed consolidated balance sheets.

The table below presents the components of net contract assets (liabilities):

Schedule of Contract Assets and Liabilities 

The components of contract assets are presented in the table below:

Schedule of Contract Assets and Liabilities 

The components of contract liabilities are presented in the table below:

Schedule of Contract Assets and Liabilities 

During the three and six months ended June 30, 2026, the Company recognized $11,336 and $23,274 of sales related to its contract liabilities on January 1, 2026, respectively. During the three and six months ended June 30, 2025, the Company recognized $10,314 and $16,858 of sales related to its contract liabilities on January 1, 2025, respectively.

Remaining Performance Obligations

As of June 30, 2026, the Company had $884.2 million of remaining performance obligations, which represents the transaction price of firm orders minus sales recognized from inception to date. Remaining performance obligations exclude unexercised contract options, verbal commitments, Letters of Intent or written mandates, and potential orders under basic ordering agreements. The Company expects to recognize 100% of sales relating to existing performance obligations within three years, of which $309.2 million are expected to be recognized during the year ending December 31, 2026, $409.8 million during the year ending December 31, 2027, and $165.2 million during the year ending December 31, 2028.