Quarterly report pursuant to Section 13 or 15(d)

Revenue

v3.23.2
Revenue
 3 Months Ended
Mar. 31, 2023
Revenue [Abstract]  
Revenue

3. Revenue

 

The following table presents the components of our revenue:

 

    Three months ended  
    March 31,  
    2023     2022  
Cost plus fixed fee   $ 1,949,509     $ 1,423,259  
Firm fixed-price     871,271       434,373  
Firm fixed-price-vehicle lease    
-
       378,333  
Total   $ 2,820,780     $ 2,235,965  

 

Our performance obligations under service agreements are generally satisfied over time as the service is provided and, therefore, all revenue above has been recognized over time.

 

Contract Balances – Accounts receivable, net at March 31, 2023 totaled $2,634,644 due from customers for contract billings and is expected to be collected within the next three to six months. At December 31, 2022, accounts receivable, net totaled $1,622,434. The increase in accounts receivable at March 31, 2023 as compared with December 31, 2022 corresponds to the timing of the collections between periods. At March 31, 2023 and December 31, 2022, allowances for doubtful accounts included in accounts receivable totaled $9,963. Bad debt expense was $0 for the three months ended March 31, 2023 and 2022.

 

Contract assets include unbilled amounts typically resulting from sales under contracts when the cost-to-cost method of revenue recognition is utilized, and revenue recognized exceeds the amount billed to the customer. Contract assets are recorded at the net amount expected to be billed and collected. Contract assets decreased $249,944 in the first three months of 2023, primarily due to the timing of the billing for the recognition of revenue related to the satisfaction or partial satisfaction of performance obligations.

 

Unfulfilled Performance Obligations – As of March 31, 2023, we expect to recognize approximately $8.2 million of revenue in future periods from unfulfilled performance obligations from existing contracts with customers.

 

The following table summarizes the expected revenue from our unfilled performance obligations as of March 31, 2023:

 

    Expected Revenue from Unfulfilled
Performance Obligations by Period		  
($ in millions)   Total     2023     2024  
Unfulfilled performance obligations:                  
Performance obligations   $ 8.2     $ 1.2     $ 7.0  
Total unfulfilled performance obligations   $ 8.2     $ 1.2     $ 7.0  

 

If any of our contracts were to be modified or terminated, the expected value of the unfulfilled performance obligations of such contracts would be reduced.