Quarterly report pursuant to Section 13 or 15(d)

Revenue

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Revenue
 3 Months Ended
Mar. 31, 2024
Revenue from Contract with Customer [Abstract]  
Revenue Revenue
The following table presents the components of our revenue:
Three months ended
March 31,
2024 2023
Cost plus fixed fee $ 214,414  $ 1,949,509 
Firm fixed-price 249,940  871,271 
Total $ 464,354  $ 2,820,780 
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 March 31, 2024, totaled $157,327 due from customers for contract billings and is expected to be collected within the next three to six months. As of December 31, 2023, accounts receivable, net totaled $212,428. As of March 31, 2024, and December 31, 2023, allowances for doubtful accounts included in accounts receivable totaled $0. Bad debt expense was $39 and $0 for the three months ended March 31, 2024 and 2023.
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 were $0 at March 31, 2024 and December 31, 2023.
Contract liabilities include billings in excess of revenue recognized and accruals for certain contract obligations. The Company had contract liabilities at March 31, 2024 and December 31, 2023 of $478,079 and $2,767,913, respectively, which includes costs accrued for an ongoing contract expected to be loss making. The loss on contract was reported on the consolidated income statement in the fourth quarter of the year ended December 31, 2023. The decrease in contract liabilities at March 31, 2024 is primarily attributable to costs incurred on the loss making contract in the first quarter of 2024 being offset against the accrual.
Unfulfilled Performance Obligations – As of March 31, 2024, we expect to recognize approximately $1,090,000 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, 2024:
Expected Revenue from Unfulfilled Performance
 Obligations by Period
Total 2024
Unfulfilled performance obligations:
Performance obligations $ 1,090,000  $ 1,090,000 
Total unfulfilled performance obligations $ 1,090,000  $ 1,090,000 
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.