Note 6 - Contract Assets and Contract Liabilities

3 Months Ended

Mar. 31, 2018

Notes to Financial Statements

Revenue from Contract with Customer [Text Block]

6. Contract Assets and Contract Liabilities

Contract assets represent contract billings for sales per contracts with customers and are classified as current. Our contract assets include our accounts receivables. During the

three

months ended

March 31, 2018,

contract assets increased

$282,000

primarily from recognized revenue of contract renewals.

Contract liabilities consist of deferred revenue from advanced payments on revenues that have

not

been recognized on a contract. The Company classifies deferred revenue as current or non-current on the expected timing of sales recognition. For the

three

months ended

March 31, 2018,

the Company recognized revenue of

$330,000

from its contract liabilities balance at

January 1, 2018

due to revenue recognition in accordance with contract terms.