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Note 3 - Contracts in Progress | 12 Months Ended
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Dec. 31, 2018
Notes to Financial Statements |
Revenue from Contract with Customer [Text Block] | Note 3 – Contracts in Progress The following table represents a disaggregation of revenue from contracts for the years ended December 31, 2018 and December 31, 2017:
(In thousands) |  | 2018 |  |  | 2017 |
Category |  |  |  |  |  |  |  |
Aerospace |  | $ | 8,115 |  |  | $ | 26,787 |
Industrial |  |  | 7,043 |  |  |  | 6,629 |
Research |  |  | 4,114 |  |  |  | 2,617 |
Point in time |  |  | 5,062 |  |  |  | 5,095 |
Net revenue |  | $ | 24,334 |  |  | $ | 41,128 |
Judgment is required to evaluate assumptions including the amount of net contract revenues and the total estimated costs to determine our progress towards contract completion and to calculate the corresponding amount of revenue to recognize. Changes in estimates for sales of systems occur for a variety of reasons, including but not limited to (i) build accelerations or delays, (ii) product cost forecast changes, (iii) cost related change orders or add-ons, or (iv) changes in other information used to estimate costs. Changes in estimates may have a material effect on the Company’s consolidated statements of operations. The table below outlines the impact on revenue of net changes in estimated transaction prices and input costs for systems related sales contracts (both increases and decreases) for the years ended December 31, 2018 and December 31, 2017 as well as the number of projects that comprise such changes. Also included in the table is the net change in estimate as a percentage of the aggregate revenue for such projects.
(In thousands) |  | 2018 |  |  | 2017 |
Increase in revenue from net changes in transaction prices |  | $ | 254 |  |  | $ | 148 |
Decrease in revenue from net changes in input cost estimates |  |  | (268 | ) |  |  | (126 | )
Net (decrease) increase in revenue from net changes in estimates |  | $ | (14 | ) |  | $ | 22 |
Number of projects |  |  | 10 |  |  |  | 2 |
Net change in estimate as a percentage of aggregate revenue for associated projects |  |  | (0.08 | %) |  |  | 0.06 | %
For the years ended December 31, 2018 and December 31, 2017, revenue (decreased) increased by ( $14,000 ) and $22,000 respectively, from net changes in transaction prices, input cost estimates, product cost overruns and product cost forecast changes related to redesign of certain systems. Contract Assets and Liabilities Contract assets consist of (i) retainage which represent the earned, but unbilled, portion for which payment is deferred by the customer until certain contractual milestones are met; and (ii) unbilled receivables which represent revenue that has been recognized in advance of billing the customer, which is common for long-term contracts. Contract liabilities consist of customer advances and billings in excess of revenue recognized. For the year ended December 31, 2018, the decrease in contract assets of approximately $7 million was primarily driven by additional billed receivables during the period, for those projects that certain milestones had been reached. During the year ended December 31, 2018, the increase in contract liabilities of $70,000 was primarily due to invoicing for those projects. Contract assets and contract liabilities on input method type contracts in progress are summarized as follows:
|  | 2018 |  |  | 2017 |
Costs incurred on contracts in progress |  | $ | 24,913,254 |  |  | $ | 22,079,680 |
Estimated earnings |  |  | 26,040,219 |  |  |  | 16,499,697 |
|  |  | 50,953,473 |  |  |  | 38,579,377 |
Billings to date |  |  | (50,132,200 | ) |  |  | (30,648,666 | )
|  | $ | 821,273 |  |  | $ | (7,930,711 | )
Included in accompanying balance sheets |  |  |  |  |  |  |  |
Under the following captions: |  |  |  |  |  |  |  |
Contract assets |  | $ | 1,357,797 |  |  | $ | 8,397,024 |
Contract liabilities |  | $ | (536,524 | ) |  | $ | (466,313 | )

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- Definition The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -URI http://asc.fasb.org/topic&trid=49130388 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -URI http://asc.fasb.org/topic&trid=2122369 + Details
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