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REVENUE RECOGNITION
 6 Months Ended
Jun. 30, 2023
Revenue from Contract with Customer [Abstract]  
REVENUE RECOGNITION

21. REVENUE RECOGNITION:

The Company recognizes revenue in accordance with ASC Topic 606, Revenue from Contracts with Customers (Topic 606). The standard establishes the principles that an entity shall apply to report useful information to users of financial statements about the nature, amount, timing, and uncertainty of revenue and cash flows from a contract with a customer.

For both the three months ended June 30, 2023 and 2022, the Company recorded 97% of its revenue from OLED related sales and 3% from the providing of services through Adesis. For the six months ended June 30, 2023 and 2022, the Company recorded 96% and 97%, respectively, of its revenue from OLED related sales and 4% and 3%, respectively, from the providing of services through Adesis.

Contract Balances

The following table provides information about assets and liabilities associated with our contracts from customers (in thousands):

 

 

 

As of June 30, 2023

 

Accounts receivable

 

$

109,390

 

Short-term unbilled receivables

 

 

13,263

 

Short-term contract assets

 

 

2,585

 

Long-term unbilled receivables

 

 

232

 

Long-term contract assets

 

 

10,729

 

Short-term deferred revenue

 

 

29,732

 

Long-term deferred revenue

 

 

18,410

 

 

Short-term and long-term unbilled receivables and contract assets are classified as other current assets and other assets, respectively, on the Consolidated Balance Sheets. The deferred revenue balance as of June 30, 2023 will be recognized as materials are shipped to customers over the remaining contract periods. As of June 30, 2023, the Company had $23.9 million of backlog associated with committed purchase orders from its customers for phosphorescent emitter material. These orders are anticipated to be fulfilled within the next 90 days.

Significant changes in the assets and liabilities balances associated with the Company's contracts from customers for the six months ended June 30, 2023 and 2022 are as follows (in thousands):

 

 

 

Six Months Ended June 30, 2023

 

 

 

Assets

 

 

Liabilities

 

Balance at December 31, 2022

 

$

38,457

 

 

$

(63,878

)

Revenue recognized that was previously included in deferred revenue, net

 

 

—

 

 

 

100,242

 

Increases due to cash received

 

 

—

 

 

 

(91,111

)

Cumulative catch-up adjustment arising from changes in estimates of
   transaction price, net

 

 

—

 

 

 

6,605

 

Unbilled receivables recorded, net

 

 

9,404

 

 

 

—

 

Contract assets recorded, net

 

 

(1,069

)

 

 

—

 

Transferred to receivables from unbilled receivables

 

 

(19,983

)

 

 

—

 

Net change

 

 

(11,648

)

 

 

15,736

 

Balance at June 30, 2023

 

$

26,809

 

 

$

(48,142

)

 

 

 

Six Months Ended June 30, 2022

 

 

 

Assets

 

 

Liabilities

 

Balance at December 31, 2021

 

$

8,127

 

 

$

(157,081

)

Revenue recognized that was previously included in deferred revenue, net

 

 

—

 

 

 

110,258

 

Increases due to cash received

 

 

—

 

 

 

(92,976

)

Cumulative catch-up adjustment arising from changes in estimates of
   transaction price, net

 

 

—

 

 

 

10,672

 

Unbilled receivables recorded, net

 

 

4,266

 

 

 

—

 

Net change

 

 

4,266

 

 

 

27,954

 

Balance at June 30, 2022

 

$

12,393

 

 

$

(129,127

)

 

The cumulative catch-up adjustment arising from changes in estimates of transaction price, net was $6.6 million for the six months ended June 30, 2023 as compared to $10.7 million for the six months ended June 30, 2022. These adjustments resulted from an increase in the average price per gram that was primarily due to the decrease in anticipated demand by several of the Company's customers over the remaining lives of their contracts, resulting from changes in global macroeconomic factors.