REVENUE RECOGNITION

9 Months Ended

Sep. 30, 2022

Revenue from Contract with Customer [Abstract]

REVENUE RECOGNITION

REVENUE RECOGNITION:

The Company recognizes revenue in accordance with ASC Topic 606, Revenue from Contracts with Customers (Topic 606). The standard establishes the principles that an entity shall apply to report useful information to users of financial statements about the nature, amount, timing, and uncertainty of revenue and cash flows from a contract with a customer.

For both three-month and nine-month periods ended September 30, 2022 and 2021, the Company recorded 97% of its revenue from OLED related sales and 3% from the providing of services through Adesis, respectively.

Contract Balances

The following table provides information about assets and liabilities associated with our contracts from customers (in thousands):

	As of September 30, 2022
Accounts receivable	$	78,193
Short-term unbilled receivables		13,629
Short-term deferred revenue		67,254
Long-term deferred revenue		26,761

Short-term and long-term unbilled receivables are classified as other current assets and other assets, respectively, on the Consolidated Balance Sheets. The deferred revenue balance as of September 30, 2022 will be recognized as materials are shipped to customers over the remaining contract periods. As of September 30, 2022, the Company had $25.5 million of backlog associated with committed purchase orders from its customers for phosphorescent emitter material. These orders are anticipated to be fulfilled within the next 90 days.

Significant changes in the unbilled receivables and deferred liabilities balances for the nine months ended September 30, 2022 and 2021, are as follows (in thousands):

	Nine Months Ended September 30, 2022
	Unbilled Receivables		Deferred Revenue
Balance at December 31, 2021	$	8,127	$	(157,081	)
Revenue recognized that was previously included in deferred revenue, net		—		178,737
Increases due to cash received		—		(132,961	)
Cumulative catch-up adjustment arising from changes in estimates of    transaction price, net		—		17,290
Unbilled receivables recorded, net		5,502		—
Net change		5,502		63,066
Balance at September 30, 2022	$	13,629	$	(94,015	)

	Nine Months Ended September 30, 2021
	Unbilled Receivables			Deferred Revenue
Balance at December 31, 2020	$	10,429		$	(162,301	)
Revenue recognized that was previously included in deferred revenue, net		—			145,535
Increases due to cash received		—			(160,021	)
Cumulative catch-up adjustment arising from changes in estimates of    transaction price, net		—			9,854
Unbilled receivables recorded, net		24,209			—
Transferred to receivables from unbilled receivables		(7,147	)		—
Net change		17,062			(4,632	)
Balance at September 30, 2021	$	27,491		$	(166,933	)

The cumulative catch-up adjustment arising from changes in estimates of transaction price, net for the nine months ended September 30, 2022 increased by $7.4 million as compared to the nine months ended September 30, 2021. The increase in the cumulative catch-up adjustment arising from changes in estimates of transaction price, net was primarily due to a decrease in anticipated customer demand over their remaining contract lives.