Quarterly report pursuant to Section 13 or 15(d)

Revenue

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Revenue
 6 Months Ended
Jun. 30, 2024
Revenue from Contract with Customer [Abstract]  
Revenue Revenue
The following table presents the components of our revenue:
Three months ended
June 30,		 Six months ended June 30,
2024 2023 2024 2023
Cost plus fixed fee $ -  $ 627,660  $ 214,414  $ 2,577,168 
Firm fixed-price 501,708  500,455  751,648  1,371,727 
Total $ 501,708  $ 1,128,115  $ 966,062  $ 3,948,895 
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 June 30, 2024, totaled $176,458 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 June 30, 2024, and December 31, 2023, allowances for doubtful accounts included in accounts receivable totaled $0. Bad debt expense was $0 and $39 for the three and six months ended June 30, 2024, respectively and $0 for the three and six months ended June 30, 2023, respectively.
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 $482,576 at June 30, 2024 and $0 December 31, 2023.
Contract liabilities include billings in excess of revenue recognized and accruals for certain contract obligations. The Company had contract liabilities at June 30, 2024 and December 31, 2023 of $457,872 and $2,767,913, respectively. Contract liabilities at June 30, 2024 and December 31, 2023 included costs accrued for an ongoing contract expected to be loss making with the loss reported on the consolidated income statement for the three and six months ended June 30, 2024 and in the fourth quarter of the year ended December 31, 2023. The decrease in contract liabilities at June 30, 2024 is primarily attributable to costs incurred on the loss making contract in the first half of 2024 being offset against the accrual.
Unfulfilled Performance Obligations – As of June 30, 2024, we expect to recognize approximately $1,667,000 of revenue in future periods from unfulfilled performance obligations from existing contracts with customers.
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.