Long-term contracts - Note 3

12 Months Ended

Dec. 31, 2016

Notes to Financial Statements

Long-term contracts - Note 3

3. LONG-TERM CONTRACTS

In March 2015, we signed a license agreement with Sony for our PicoP® scanning technology. The license agreement granted Sony a non-exclusive license to our technology to incorporate into display modules it manufactures and sells for up to eight years. As part of the agreement, we received an $8.0 million upfront license fee in March 2015, and we will receive ongoing per unit royalties for each display module it sells.

In October 2014, we entered into a $1.5 million agreement with Sony for display module support services as part of the production readiness and commercialization of display modules incorporating PicoP® scanning technology. We recognized the full contract value of $1.5 million in revenue in June 2015, having completed all deliverables and obligations under the agreement.

The following table summarizes the costs incurred on our revenue contracts (in thousands):

		December 31,
		2016		2015
Costs and estimated earnings incurred on uncompleted contracts	$	193	$	-
Billings on uncompleted contracts		(236)		-
	$	(43)	$	-
Included in consolidated balance sheets under the following captions:
Other current assets	$	125	$	-
Billings on uncompleted contracts in excess of related costs		(168)		-
	$	(43)	$	-