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Sales, Contract Assets and Contract Liabilities
 6 Months Ended
Jun. 30, 2021
Sales, Contract Assets and Contract Liabilities  
Sales, Contract Assets and Contract Liabilities

Note 5 – Sales, Contract Assets and Contract Liabilities

The Company recognized no revenue during the three months ended June 30, 2021 and $363,000 during the six months ended June 30, 2021 from the completion and delivery of a multi burner product contract with an infrastructure company. There was no revenue during the three and six months ended June 30, 2020.

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During the three and six months ended June 30, 2021, the Company recognized cost of goods sold of $505,000 and $730,000 respectively. Cost of sales during the three months ended June 30, 2021 consisted of $556,000 in estimated losses on two contracts that the Company anticipates will show losses upon completion. This was offset by adjustments totaling $35,000 related to the reversal of an accrual for product warranty that expired on a completed project from the year 2018 and $16,000 in adjustments for residual cost accruals. Cost of sales during the six months ended June 30, 2021 consisted of cost of goods sold of $250,000, including a $36,000 warranty accrual, recorded upon completion of the burner contract and $574,000 in estimated losses on two contracts that the Company anticipates will show losses upon completion. The recognized cost of goods sold was offset by adjustments totaling $86,000 related to the reversals of accruals for product warranties that expired on four completed projects from the year 2018 and $8,000 in adjustments for residual cost accruals. The Company recognized an adjustment to cost of goods sold totaling $153,000 during the three and six months ended June 30, 2020 representing the reversal of accruals for product warranties that expired on six completed projects from years 2016 and 2017.

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The Company had contract assets of $108,000 and $92,000 and contract liabilities of $48,000 and $94,000 at June 30, 2021 and December 31, 2020, respectively.