v3.26.1
REVENUE RECOGNITION
 6 Months Ended
Jun. 30, 2026
Revenue from Contract with Customer [Abstract]  
REVENUE RECOGNITION

NOTE 5: REVENUE RECOGNITION

 

The following table represents a disaggregation of revenue for the three and six months ended June 30, 2026, and 2025 (in thousands):

  

   Over time   Point in time   Total 
   Three months ended June 30, 2026 
   Over time   Point in time   Total 
             
Energy  $-   $-   $- 
Aerospace   351    804    1,155 
Industrial   475    210    685 
Research   94    19    113 
Total  $920   $1,033   $1,953 

 

   Over time   Point in time   Total 
   Three months ended June 30, 2025 
   Over time   Point in time   Total 
             
Energy  $(4)  $11   $7 
Aerospace   1,371    560    1,931 
Industrial   1,197    46    1,243 
Research   174    49    223 
Total  $2,738   $666   $3,404 

 

   Over time   Point in time   Total 
   Six months ended June 30, 2026 
   Over time   Point in time   Total 
             
Energy  $-   $-   $- 
Aerospace   752    1,503    2,255 
Industrial   796    299    1,095 
Research   348    100    448 
Total  $1,896   $1,902   $3,798 

 

 

NOTE 5: REVENUE RECOGNITION (continued)

 

   Over time   Point in time   Total 
   Six months ended June 30, 2025 
   Over time   Point in time   Total 
             
Energy  $(4)  $19   $15 
Aerospace   3,093    1,343    4,436 
Industrial   4,616    327    4,943 
Research   200    143    343 
Total  $7,905   $1,832   $9,737 

 

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

 

The Company has unrecognized contract revenue of approximately $2.7 million at June 30, 2026 which it expects to substantially recognize as revenue within the next twelve months based on over time revenue recognition.

 

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 condensed 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 June 30, 2026 (in thousands):

 

      
Costs incurred on contracts in progress  $20,582 
Estimated earnings   9,254 
Costs and estimated earnings on uncompleted contracts   29,836 
Billings to date   (28,632)
Net cost in excess of billings   1,204 
      
Deferred revenue related to non-system contracts   (348)
Contract liability in excess of contract assets  $856 
Included in accompanying condensed consolidated balance sheet as of June 30, 2026 under the following captions:     
Contract assets  $1,397 
Contract liabilities  $541 

 

Of the contract liability balances at December 31, 2025 and 2024, $0.3 million and $2.1 million was recognized as revenue during the six months ended June 30, 2026 and 2025, respectively. Contract assets and contract liabilities at December 31, 2024 were $2.1 million and $3.0 million, respectively.