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REVENUE RECOGNITION
 9 Months Ended
Sep. 30, 2024
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 three months ended September 30, 2024 and 2023, the Company recorded 98% of its revenue from OLED related sales and 2% from the providing of services through Adesis. For the nine months ended September 30, 2024 and 2023, the Company recorded 98% and 97%, respectively, of its revenue from OLED related sales and 2% 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 September 30, 2024

 

Accounts receivable

 

$

87,693

 

Short-term unbilled receivables

 

 

50,213

 

Long-term unbilled receivables

 

 

19,165

 

Short-term contract assets

 

 

2,909

 

Long-term contract assets

 

 

7,174

 

Short-term deferred revenue

 

 

47,393

 

Long-term deferred revenue

 

 

2,376

 

 

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. Contract assets represent consideration related to the renewal of customer contracts which is recognized over the contract term based on material units sold. The deferred revenue balance as of September 30, 2024 will be recognized as materials are shipped to customers over the remaining contract periods. As of September 30, 2024, the Company had $24.4 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 nine months ended September 30, 2024 and 2023 are as follows (in thousands):

 

 

 

Nine Months Ended September 30, 2024

 

 

 

Assets

 

 

Liabilities

 

Balance at December 31, 2023

 

$

42,134

 

 

$

(59,719

)

Revenue recognized that was previously included in deferred revenue, net

 

 

—

 

 

 

86,825

 

Increases due to cash received

 

 

—

 

 

 

(82,928

)

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

 

 

—

 

 

 

6,053

 

Unbilled receivables recorded, net

 

 

109,246

 

 

 

—

 

Contract assets recorded, net

 

 

(1,893

)

 

 

—

 

Transferred to receivables from unbilled receivables

 

 

(70,026

)

 

 

—

 

Net change

 

 

37,327

 

 

 

9,950

 

Balance at September 30, 2024

 

$

79,461

 

 

$

(49,769

)

 

 

 

Nine Months Ended September 30, 2023

 

 

 

Assets

 

 

Liabilities

 

Balance at December 31, 2022

 

$

38,457

 

 

$

(63,878

)

Revenue recognized that was previously included in deferred revenue, net

 

 

—

 

 

 

143,064

 

Increases due to cash received

 

 

—

 

 

 

(159,989

)

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

 

 

—

 

 

 

5,116

 

Unbilled receivables recorded, net

 

 

29,094

 

 

 

—

 

Contract assets recorded, net

 

 

(1,860

)

 

 

—

 

Transferred to receivables from unbilled receivables

 

 

(24,893

)

 

 

—

 

Net change

 

 

2,341

 

 

 

(11,809

)

Balance at September 30, 2023

 

$

40,798

 

 

$

(75,687

)

 

The cumulative catch-up adjustment recorded to revenue arising from changes in estimates of transaction price, net was an increase of $6.1 million for the nine months ended September 30, 2024 as compared to $5.1 million for the nine months ended September 30, 2023. For the nine months ended September 30, 2024 and 2023, the adjustment 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.