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Revenue Recognition
9 Months Ended
Sep. 30, 2023
Revenue from Contract with Customer [Abstract]  
Revenue Recognition Revenue Recognition
Disaggregation of Revenue
We disaggregate our revenue from contracts with customers by geographic locations, customer type, contract type, timing of recognition, and major categories, as we believe it best depicts how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors. We disaggregate revenue on the basis of where the physical goods are shipped. We also classify revenue by the customer type of entity for which it does business, which is an indicator of the diversity of our client base. We attribute revenue generated from being a subcontractor to a commercial company as government revenue when the ultimate client is a government agency or department. Disaggregation by contract mix provides insight in terms of the degree of performance risk that we have assumed. Fixed-price contracts are considered to provide the highest amount of performance risk as we are required to deliver a scope of work or level of effort for a negotiated fixed price. Cost-based contracts are considered to provide the lowest amount of performance risk since we are generally reimbursed for all contract costs incurred in performance of contract deliverables with only the amount of incentive or award fees (if applicable) dependent on the achievement of negotiated performance requirements. By classifying revenue by major product and service, we attribute revenue from a client to the major product or service that we believe to be the client's primary market.
The details are listed in the table below for the three and nine months ended September 30, 2023 and 2022:
Three Months Ended September 30,Nine Months Ended September 30,
2023202220232022
(in thousands)(unaudited)(unaudited)
Total Revenue by Geographic Location
United States$10,238 $12,597 36,280 $33,361 
Asia11,388 7,248 20,769 16,265 
Europe6,266 8,300 19,566 20,765 
Canada, Central and South America1,859 661 5,681 6,846 
All Others952 347 2,616 558 
Total$30,703 $29,153 $84,912 $77,795 
Total Revenue by Major Customer Type
Sales to the U.S. government$1,982 $2,604 $5,207 $6,394 
U.S. direct commercial sales and other8,257 9,993 31,074 26,967 
Foreign commercial sales & other20,464 16,556 48,631 44,434 
Total$30,703 $29,153 $84,912 $77,795 
Total Revenue by Contract Type
Fixed-price contracts$30,234 $28,202 $82,757 $75,556 
Cost-type contracts469 951 2,155 2,239 
  Total$30,703 $29,153 $84,912 $77,795 
Total Revenue by Timing of Recognition
Goods transferred at a point in time$27,921 $25,114 75,761 $66,608 
Goods/services transferred over time2,782 4,039 9,151 11,187 
Total$30,703 $29,153 $84,912 $77,795 
Total Revenue by Major Products/Services
Technology development$1,253 $2,062 4,381 $5,198 
Test, measurement and sensing systems29,217 26,809 79,783 70,927 
Other233 282 748 1,670 
Total$30,703 $29,153 $84,912 $77,795 
Contract Balances
Our contract assets consist of unbilled amounts for research contracts as well as custom product contracts. Contract liabilities include excess billings, and customer deposits. During the three and nine months ended September 30, 2023, we recognized $0.3 million and $2.9 million of revenue, respectively, that was included in contract liabilities as of December 31, 2022.
The following table shows the components of our contract balances as of September 30, 2023 and December 31, 2022:

September 30, 2023December 31, 2022
(in thousands)
Contract assets$7,324 $7,691 
Contract liabilities4,619 4,089 
   Net contract assets$2,705 $3,602 
Performance Obligations
Unfulfilled performance obligations represent amounts expected to be earned on executed contracts. Indefinite delivery and quantity contracts and unexercised options are not reported in total unfulfilled performance obligations. Unfulfilled performance obligations include funded obligations, which is the amount for which money has been directly authorized by the U.S. government and for which a purchase order has been received by a commercial customer, and unfunded obligations represent firm orders for which funding has not yet been appropriated. The approximate value of our unfulfilled performance obligations was $49.0 million at September 30, 2023. We expect to satisfy 41% of the performance obligations in 2023, 55% in 2024 and the remainder by 2028.