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Note 3 - Revenue
 12 Months Ended
Dec. 31, 2022
Notes to Financial Statements  
Revenue from Contract with Customer [Text Block]

Note 3 – Revenue

 

The following table represents a disaggregation of revenue from contracts by end markets for the years ended December 31, 2022 and 2021 (in thousands):

 

    Year Ended December 31, 2022  
                         
   

Over time

    

Point in time

    

Total

  

Energy

   $ 9,094     $ 58     $ 9,152  

Aerospace

     95       1,527       1,622  

Industrial

     5,961       4,856       10,817  

Research

     2,807       1,415       4,222  

Total

   $ 17,957     $ 7,856     $ 25,813  

 

    Year Ended December 31, 2021  
                         
   

Over time

    

Point in time

    

Total

  

Energy

   $ 1,141     $ -     $ 1,141  

Aerospace

     386       2,214       2,600  

Industrial

     4,989       3,863       8,852  

Research

     2,294       1,560       3,854  

Total

   $ 8,810     $ 7,637     $ 16,447  

 

The energy market includes customers involved in the manufacture of silicon carbide wafers and batteries. Aerospace market includes customers that manufacture aircraft engines. Industrial end market consists of various end customers in diverse industries. Research market principally represents customers that are universities and other research institutions.

 

The Company has unrecognized contract revenue of approximately $16.2 million at December 31, 2022, which it expects to recognize as revenue within the next twelve months.

 

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 financial position and results of operations.

 

Contract assets and contract liabilities on input method type contracts in progress are summarized at December 31 as follows (in thousands):

 

   

2022

    

2021

  

Costs incurred on contracts in progress

   $ 14,390     $ 7,419  

Estimated earnings

     10,926       5,071  
      25,316       12,490  

Billings to date

     (26,925 )     (11,409 )
      (1,609 )     1,081  

Deferred revenue related to non-systems contracts

     (263 )     (193 )
    $ (1,872 )   $ 888  
Included in accompanying consolidated balance sheets under the following captions (in thousands):                
                 

Contract assets

   $ 2,170     $ 2,538  

Contract liabilities

   $ 4,042     $ 1,650  

 

Of the contract liability balances at December 31, 2021 and December 31, 2020, $1.7 million and $0.8 million was recognized as revenue during the years ended December 31, 2022 and 2021, respectively.