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Revenues and Contract Balances

9 Months Ended

Sep. 30, 2025

Note 5 – Revenues and Contract Balances

The following is a summary of our revenues by type for the three and nine months ended September 30, 2025 and September 30, 2024:

	Three Months Ended
Name	September 30, 2025		%			September 30, 2024		%
Equipment revenue	$	35,650		5	%	$	-	0		%
Service revenue		724,767		95	%		81,490		100	%
Total	$	760,417		100	%	$	81,490		100	%

	Nine Months Ended
Name	September 30, 2025		%			September 30, 2024		%
Equipment revenue	$	254,874		13	%	$	305,869		71	%
Service revenue		1,643,610		87	%		127,720		29	%
Total	$	1,898,484		100	%	$	433,589		100	%

Unbilled Accounts Receivable

The following is a summary of our unbilled accounts receivable activity for the nine months ended September 30, 2025 and the year ended December 31, 2024:

	Balance at September 30,			Balance at December 31,
	2025			2024
Unbilled accounts receivable at beginning of period	$	1,653,007		$	1,494,553
Services performed but unbilled		886,115			217,666
Services billed		(383,500	)		(59,212	)
Unbilled accounts receivable at end of period	$	2,155,622		$	1,653,007

Pursuant to contractual terms with our customers, we anticipate billing a portion the unbilled accounts receivable during our 2025 fiscal year and the remaining balance in 2026 fiscal year.

Contract Assets

The following is a summary of our contract assets activity for the nine months ended September 30, 2025 and the year ended December 31, 2024:

	Balance at September 30,			Balance at December 31,
	2025			2024
Contract assets at beginning of period	$	136,651		$	-
Contract costs deferred		60,392			136,651
Contract costs expensed		(45,550	)		-
Contract assets at end of period	$	151,493		$	136,651

Unearned Revenue

The following is a summary of our unearned revenue activity for the nine months ended September 30, 2025 and year ended December 31, 2024:

	Balance at June 30,			Balance at December 31,
	2025			2024
Unearned revenue at beginning of period	$	227,683		$	130,000
Billings deferred		325,746			197,683
Refundable deposit returned		-			(100,000	)
Recognition of prior unearned revenue		(162,966	)		-
Unearned revenue at end of period	$	390,463		$	227,683

At September 30, 2025, we anticipate recognizing approximately $360,000 of the unearned revenue in 2025 which has been presented as a current liability at September 30, 2025. The remaining balance of $30,000 has been classified as a long-term liability as the timing of revenue recognition is unknown.