Quarterly report pursuant to Section 13 or 15(d)

Revenue

v3.23.3
Revenue
 9 Months Ended
Sep. 30, 2023
Revenue [Abstract]  
Revenue

3. Revenue

 

The following table presents the components of our revenue:

 

    Three months ended     Nine months ended  
    September 30,     September 30,  
    2023     2022     2023     2022  
Cost plus fixed fee   $ 1,075,603     $ 1,847,250     $ 3,652,771     $ 5,482,569  
Firm fixed-price     518,251       756,027       1,889,978       1,589,565  
Firm fixed-price-vehicle lease    
-
       378,333      
-
       1,135,000  
Total   $ 1,593,854     $ 2,981,610     $ 5,542,749     $ 8,207,134  

 

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 as of September 30, 2023, totaled $997,400 due from customers for contract billings and is expected to be collected within the next three to nine months. As of December 31, 2022, accounts receivable, net totaled $1,622,434. The decrease in accounts receivable as of September 30, 2023, as compared with December 31, 2022, corresponds to the timing of the collections between periods. As of September 30, 2023, and December 31, 2022, allowances for doubtful accounts included in accounts receivable totaled $9,963. Bad debt expense was $0 for the three and nine months ended September 30, 2023. Bad debt expense was $0 and $17,827, respectively, for the three and nine months ended September 30, 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. The Company had $26,712 of contract assets as of September 30, 2023 and $573,895 as of December 31, 2022. Contract assets decreased $547,183 in the first nine 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.

 

Contract liabilities include billings in excess of revenue recognized and accrual of certain contract obligations. The Company had $152,000 of contract liabilities as of September 30, 2023, and $0 as of December 31, 2022, respectively.

 

Unfulfilled Performance Obligations – As of September 30, 2023, we expect to recognize approximately $1.9 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 September 30, 2023:

 

    Expected Revenue from Unfulfilled Performance
Obligations by Period		  
($ in millions)   Total     2023     2024  
                   
Unfulfilled performance obligations:                  
Performance obligations   $ 1.9     $ 1.3     $ 0.6  
Total unfulfilled performance obligations   $ 1.9     $ 1.3     $ 0.6  

 

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.