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REVENUE RECOGNITION
 9 Months Ended
Sep. 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 nine months ended September 30, 2025, and 2024 (in thousands):

  

          
   Three months ended September 30, 2025 
   Over time   Point in time   Total 
Energy  $67   $5   $72 
Aerospace   1,553    368    1,921 
Industrial   2,397    247    2,644 
Research   2,318    453    2,771 
Total  $6,335   $1,073   $7,408 

 

          
  

Three months ended September 30, 2024

 
   Over time   Point in time   Total 
Energy  $-   $448   $448 
Aerospace   3,814    969    4,783 
Industrial   1,522    368    1,890 
Research   927    146    1,073 
Total  $6,263   $1,931   $8,194 

 

          
  

Nine months ended September 30, 2025

 
   Over time   Point in time   Total 
Energy  $67   $19   $86 
Aerospace   4,804    1,718    6,522 
Industrial   8,434    970    9,404 
Research   3,788    1,036    4,824 
Total  $17,093   $3,743   $20,836 

 

          
   Nine months ended September 30, 2024 
   Over time   Point in time   Total 
Energy  $216   $500   $716 
Aerospace   8,285    1,488    9,773 
Industrial   4,324    1,142    5,466 
Research   2,963    544    3,507 
Total  $15,788   $3,674   $19,462 

 

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.

 

 

NOTE 4: REVENUE RECOGNITION (continued)

 

The Company has unrecognized contract revenue of approximately $5.3 million at September 30, 2025 of contracts in progress that 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.

 

Contract assets and liabilities

 

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

  

     
Costs incurred on contracts in progress  $20,998 
Estimated earnings   10,067 
Costs and estimated earnings on uncompleted contracts    31,065 
Billings to date   (26,271)
Net cost in excess of billings    4,794 

Deferred revenue related to non-system contracts

   (566)
Contract liability in excess of contract assets  $4,228 

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

     
Contract assets  $4,952 
Contract liabilities  $724 

 

Of the contract liability balances at December 31, 2024 and 2023, $2.4 million and $2.7 million was recognized as revenue during the nine months ended September 30, 2025 and 2024, respectively. Contract assets and contract liabilities at December 31, 2023 were $1.6 million and $4.9 million, respectively.