Note 6 - Contract Assets and Contract Liabilities

9 Months Ended

Sep. 30, 2018

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

September 30, 2018,

contract assets increased

$49,000

because new contract assets exceeded cash receipts. For the

nine

months ended

September 30, 2018,

contract assets increased

$155,000

because new contract assets exceeded 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

September 30, 2018,

the Company recognized revenue of

$329,000

from its contract liabilities balance due to revenue recognition in accordance with contract terms. For the

nine

months ended on

September 30, 2018,

advance payments increased

$1.2

million offset by recognizing revenue of

$987,000.