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Revenue
 6 Months Ended
Dec. 31, 2022
Revenue  
Revenue

3. Revenue

 

Product Revenue

We are a manufacturer of optical components and higher-level assemblies, including precision molded glass aspheric optics, molded and diamond-turned infrared optical components, and other optical materials used to produce products that manipulate light. We design, develop, manufacture, and distribute optical components and assemblies utilizing advanced optical manufacturing processes. We also perform research and development for optical solutions for a wide range of optics markets. Revenue is derived primarily from the sale of optical components and assemblies.

 

Revenue Recognition

Revenue is generally recognized upon transfer of control, including the risks and rewards of ownership, of products or services to customers in an amount that reflects the consideration we expect to receive in exchange for those products or services. We generally bear all costs, risk of loss, or damage and retain title to the goods up to the point of transfer of control of products to customers. Shipping and handling costs are included in the cost of goods sold. We present revenue net of sales taxes and any similar assessments.

 

Customary payment terms are granted to customers, based on credit evaluations. We currently do not have any contracts where revenue is recognized, but the customer payment is contingent on a future event. We record deferred revenue when cash payments are received or due in advance of our performance. Deferred revenue was not significant as of June 30, 2022 and December 31, 2022, respectively.

Nature of Products

Revenue from the sale of optical components and assemblies is recognized upon transfer of control, including the risks and rewards of ownership, to the customer. The performance obligations for the sale of optical components and assemblies are satisfied at a point in time. Product development agreements are generally short-term in nature, with revenue recognized upon satisfaction of the performance obligation, and transfer of control of the agreed-upon deliverable. We have organized our products in three groups: precision molded optics (“PMO”), infrared, and specialty products. Revenues from product development agreements are included in specialty products. Revenue by product group for the three and six months ended December 31, 2022 and 2021 was as follows:

 

 

 

Three Months Ended

December 31,

 

 

Six Months Ended

December 31,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

PMO

 

$3,876,627

 

 

$3,762,497

 

 

$7,149,182

 

 

$7,575,447

 

Infrared Products

 

 

4,024,591

 

 

 

5,075,168

 

 

 

7,664,250

 

 

 

9,963,086

 

Specialty Products

 

 

571,461

 

 

 

405,509

 

 

 

1,026,148

 

 

 

807,984

 

Total revenue

 

$8,472,679

 

 

$9,243,174

 

 

$15,839,580

 

 

$18,346,517