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Revenue, Contract Assets and Contract Liabilities
 12 Months Ended
Dec. 31, 2023
Revenue, Contract Assets and Contract Liabilities  
Revenue, Contract Assets and Contract Liabilities

Note 5 – Revenue, Contract Assets and Contract Liabilities

The Company’s contracts with customers generally have performance obligations and a schedule of non-refundable cancellation obligations. Performance obligations typically fall into one of three categories, product shipment, burner performance tests and engineering feasibility studies. Customer payment milestones are unique to individual contracts and may occur prior to completion of performance obligations. Customer payment terms typically range between thirty and sixty days from the date of billing. Our customer contracts typically have a duration of less than twelve months. Delays in contract performance, if any, typically occur as a result of customer onsite project delays outside of our control.

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The Company recognized $2,403 thousand of revenues and $1,586 thousand of cost of goods sold during the year ended December 31, 2023. Revenues and cost of goods sold relate predominately to the Company’s process burner product line. During 2023, the Company delivered multiple burners in connection with a single customer order. Prior to delivery, we successfully

completed multiple customer witness tests at a burner test facility for two separate customer orders. Both the witness tests and burner shipment constitute contractual performance obligations per ASC 606.

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The Company recognized $374 thousand of revenues and $258 thousand of cost of goods sold during the year ended December 31, 2022. The revenue and cost of goods sold are mostly in connection with the completion of a technology validation project.

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The Company had contract assets of $188 thousand and $20 thousand and contract liabilities of $1,116 thousand and $247 thousand at December 31, 2023 and 2022, respectively. Of the $247 thousand contract liability balance at December 31, 2022, the Company recognized revenue $247 thousand during the year ended December 31, 2023. In addition, the net accounts receivable balance at December 31, 2021, was $33 thousand.

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