REVENUES

9 Months Ended

Sep. 30, 2023

REVENUES

3.REVENUES

The following table provides information about revenue by recognition model during the three and nine months ended September 30, 2023 and 2022:

	Three Months Ended September 30,				Nine Months Ended September 30,
Revenues by recognition model	2023		2022		2023		2022
Point-in-time	$	30,226	$	31,312	$	94,558	$	96,656
Over-time		37,435		31,745		90,043		62,578
Total revenue by recognition model	$	67,661	$	63,057	$	184,601	$	159,234

The timing of revenue recognition, billings, and cash collections results in billed accounts receivable, unbilled receivables (presented within contract assets) and customer advances and deposits (presented within contract liabilities) on the condensed consolidated balance sheets, where applicable. Amounts are generally billed as work progresses in accordance with agreed-upon milestones. These individual contract assets and liabilities are reported in a net position on a contract-by-contract basis on the condensed consolidated balance sheets at the end of each reporting period.

The following table presents the balances related to enforceable contracts as of September 30, 2023 and December 31, 2022:

	September 30, 2023			December 31, 2022
Contract balances
Accounts receivable, net	$	22,787		$	36,572
Contract assets		13,042			9,451
Contract liabilities		(133,793	)		(108,344	)

Changes in contract liabilities for the three months ended September 30, 2023 were as follows:

Contract liabilities, at June 30, 2023	$	134,574
Customer advances received or billed		40,128
Recognition of unearned revenue		(40,909	)
Contract liabilities, at September 30, 2023	$	133,793

Changes in contract liabilities for the nine months ended September 30, 2023 were as follows:

Contract liabilities, at December 31, 2022	$	108,344
Customer advances received or billed		108,711
Recognition of unearned revenue		(83,262	)
Contract liabilities, at September 30, 2023	$	133,793

The revenue recognized from the contract liabilities consisted of the Company satisfying performance obligations during the normal course of business.

The amount of revenue recognized from changes in the transaction price associated with performance obligations satisfied in prior years during the three and nine months ended September 30, 2023 and 2022 was not material.

Backlog

The Company’s backlog represents the total dollar value of work to be performed on contracts awarded and in progress. The amount of backlog increases with new contracts or additions to existing contracts and decreases as revenue is recognized on existing contracts. Contracts are included in the amount of backlog when an enforceable agreement has been reached. Remaining backlog totaled $582,442 as of September 30, 2023, of which approximately 57% is expected to be recognized within 12 months, with the remaining 43% to be recognized beyond 12 months.

Concentration of Credit Risk and Significant Customers

As of September 30, 2023, the Company’s customers that accounted for 10% or more of the total accounts receivable, net, were:

	September 30, 2023
Dynetics, Inc.		19	%
National Aeronautics and Space Administration		13	%

For the nine months ended September 30, 2023, the Company’s customers that accounted for 10% or more of the total revenue, were as follows:

	Nine Months Ended September 30, 2023
Northrop Grumman Corporation		13	%
Capella Space Corp.		12	%

Customer Financing

In connection with the signing of a multi-launch agreement with a commercial customer, the Company entered into a subordinated loan and security agreement. The commercial customer may choose to have certain milestone payments financed under the terms of the subordinated loan and security agreement. The receivable will bear no interest until the initial launch dates passes, after which interest will accrue at a fixed rate of 10.8%. Principal and interest payments will be made over 12 quarterly payments from the launch date.

As of September 30, 2023, the Company had $3,733 customer financing in prepaid and other currents assets and $14,467 customer financing receivable in other non-current assets on the condensed consolidated balance sheets. Customer financing interest income for the three and nine months ended September 30, 2023 was $87.