Note 6 - Contract Assets and Contract Liabilities

6 Months Ended

Jun. 30, 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

June 30, 2018,

contract assets decreased

$175,000

due to cash receipts exceeding new contract assets. For the

six

months ended

June 30, 2018,

contract assets increased

$106,000

due to recognized contract assets exceeding cash receipts.

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

June 30, 2018,

the Company recognized revenue of

$219,000

from its contract liabilities balance at

March 31, 2018

due to revenue recognition in accordance with contract terms and was offset advance payments of

$1.1

million. For the

six

month ended on

June 30, 2018,

advance payments increased

$1.1

million offset by recognizing revenue of

$549,000.