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CONTRACT ASSETS AND LIABILITIES

3 Months Ended

Mar. 31, 2022

CONTRACT ASSETS AND LIABILITIES

Contract assets represent revenue recognized on contracts in excess of amounts invoiced to the customers and the Company’s right to consideration is conditional on something other than the passage of time. Amounts may not exceed their net realizable value. Under the typical payment terms of our government contracts, the customer retains a portion of the contract price until completion of the contract, as a measure of protection for the customer. Our government contracts therefore typically result in revenue recognized in excess of billings, which we present as contract assets. Contract assets are classified as current. The Company’s contract liabilities represent customer payments received or due from the customer in excess of revenue recognized. Contract liabilities are classified as current.

	March 31,		December 31,
	2022		2021
Contract assets	$	25,756,169	$	24,459,339
Contract liabilities		3,368,018		5,122,766
Net Contract assets	$	22,388,151	$	19,336,573

Revenue recognized for the periods ended March 31, 2022 and 2021 that was included in the contract liabilities balance as of January 1, 2022 and 2021, respectively, was approximately $2.5 million and $1.5 million, respectively.