
10.	CONTRACT ASSETS AND LIABILITIES

Contract assets include unbilled amounts typically resulting from sales under contracts when the cost-to-cost method of revenue recognition is utilized and revenue recognized from customer arrangements, including licensing, exceeds the amount billed to the customer, and right to payment is not just subject to the passage of time. Amounts may not exceed their net realizable value. Contract assets are generally classified as current. The Company classifies the noncurrent portion of contract assets under other assets in its condensed consolidated balance sheets.

Contract liabilities consist of advance payments and billings in excess of cost incurred and deferred revenue.

Net contract assets (liabilities) consisted of the following:



	March 30, 2019			December 29, 2018			$ Change			% Change
Contract assets—current	$	2,141,677		$	3,089,663		$	(947,986	)	(31	)%
Contract liabilities—current	(1,189,772		)	(388,933		)	(800,839		)	206	%
Contract liabilities—noncurrent	(20,142		)	(17,294		)	(2,848		)	17	%
Net contract assets (liabilities)	$	931,763		$	2,683,436		$	(1,751,673	)	(65	)%

The $1.8 million decrease in the Company's net contract assets (liabilities) from December 29, 2018 to March 30, 2019 was primarily due the shipment of inventory that was in process at December 29, 2018.

In the three months ended March 30, 2019, the Company recognized revenue of $0.1 million related to our contract liabilities at December 29, 2018. In the three months ended March 31, 2018, the Company recognized revenue of less than $0.1 million related to our contract liabilities at December 31, 2017.

The Company did not recognize impairment losses on our contract assets in the three months ended March 30, 2019 or March 31, 2018.