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REVENUE RECOGNITION
 6 Months Ended
Jun. 30, 2025
Revenue from Contract with Customer [Abstract]  
REVENUE RECOGNITION

NOTE 4: REVENUE RECOGNITION

 

The following table represents a disaggregation of revenue for the three and six months ended June 30, 2025, and 2024 (in thousands):

 

   Over time   Point in time   Total 
   Three months ended June 30, 2025 
   Over time   Point in time   Total 
             
Energy  $-   $7   $7 
Aerospace   1,412    562    1,974 
Industrial   1,912    316    2,228 
Research   716    186    902 
Total  $4,040   $1,071   $5,111 

 

   Over time   Point in time   Total 
  

Three months ended June 30, 2024

 
   Over time   Point in time   Total 
             
Energy  $239   $12   $251 
Aerospace   2,694    179    2,873 
Industrial   1,542    300    1,842 
Research   1,174    205    1,379 
Total  $5,649   $696   $6,345 

 

 

NOTE 4: REVENUE RECOGNITION (continued)

 

   Over time   Point in time   Total 
   Six months ended June 30, 2025 
   Over time   Point in time   Total 
             
Energy  $-   $14   $14 
Aerospace   3,251    1,350    4,601 
Industrial   6,036    723    6,759 
Research   1,470    583    2,053 
Total  $10,757   $2,670   $13,427 

 

   Over time   Point in time   Total 
  

Six months ended June 30, 2024

 
   Over time   Point in time   Total 
             
Energy  $239   $30   $269 
Aerospace   4,496    494    4,990 
Industrial   2,801    774    3,575 
Research   2,035    398    2,433 
Total  $9,571   $1,696   $11,267 

 

The energy market includes customers involved in the manufacture of silicon carbide wafers and batteries. The aerospace market includes customers that manufacture aircraft engines. The industrial end market consists of various end customers in diverse industries. The research market principally represents customers such as universities and other research institutions.

 

The Company has unrecognized contract revenue of approximately $10.9 million at June 30, 2025, which it expects to substantially recognize as revenue within the next twelve months based on over time revenue recognition.

 

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 may 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 condensed consolidated statements of operations.

 

 

NOTE 4: REVENUE RECOGNITION (continued)

 

Contract assets and liabilities

 

Contract assets and contract liabilities on input method type contracts in progress are summarized as follows as of June 30, 2025 (in thousands):

 

      
Costs incurred on contracts in progress  $18,199 
Estimated earnings   8,262 
Costs and estimated earnings on uncompleted contracts   26,461 
Billings to date   (23,468)
Net cost in excess of billings   2,993 
      
Deferred revenue related to non-system contracts   (1,242)
Contract liability in excess of contract assets  $1,751 

Included in accompanying condensed consolidated balance sheet as of June 30, 2025 under the following captions (in thousands):

     
Contract assets  $3,768 
Contract liabilities  $2,017 

 

Of the contract liability balances at December 31, 2024 and 2023, $2.1 million and $2.7 million was recognized as revenue during the six months ended June 30, 2025 and 2024, respectively. Contract assets and contract liabilities at December 31, 2023 were $1.6 million and $4.9 million, respectively.