REVENUE RECOGNITION

9 Months Ended

Sep. 30, 2023

Revenue from Contract with Customer [Abstract]

REVENUE RECOGNITION

21. 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 the three months ended September 30, 2023 and 2022, the Company recorded 98% and 97%, respectively, of its revenue from OLED related sales and 2% and 3%, respectively, from the providing of services through Adesis. For both nine-month periods ended September 30, 2023 and 2022, the Company recorded 97% of its revenue from OLED related sales and 3% from the providing of services through Adesis.

Contract Balances

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

	As of September 30, 2023
Accounts receivable	$	122,192
Short-term unbilled receivables		21,896
Short-term contract assets		2,585
Long-term unbilled receivables		6,379
Long-term contract assets		9,938
Short-term deferred revenue		66,828
Long-term deferred revenue		8,859

Short-term and long-term unbilled receivables and contract assets are classified as other current assets and other assets, respectively, on the Consolidated Balance Sheets. The deferred revenue balance as of September 30, 2023 will be recognized as materials are shipped to customers over the remaining contract periods. As of September 30, 2023, the Company had $30.5 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 assets and liabilities balances associated with the Company's contracts from customers for the nine months ended September 30, 2023 and 2022 are as follows (in thousands):

	Nine Months Ended September 30, 2023
	Assets			Liabilities
Balance at December 31, 2022	$	38,457		$	(63,878	)
Revenue recognized that was previously included in deferred revenue, net		—			143,064
Increases due to cash received		—			(159,989	)
Cumulative catch-up adjustment arising from changes in estimates of    transaction price, net		—			5,116
Unbilled receivables recorded, net		29,094			—
Contract assets recorded, net		(1,860	)		—
Transferred to receivables from unbilled receivables		(24,893	)		—
Net change		2,341			(11,809	)
Balance at September 30, 2023	$	40,798		$	(75,687	)

	Nine Months Ended September 30, 2022
	Assets		Liabilities
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	)

The cumulative catch-up adjustment arising from changes in estimates of transaction price, net was $5.1 million for the nine months ended September 30, 2023 as compared to $17.3 million for the nine months ended September 30, 2022. These adjustments resulted from an increase in the average price per gram that was primarily due to the decrease in anticipated demand by several of the Company's customers over the remaining lives of their contracts, resulting from changes in global macroeconomic factors.