Revenue Recognition

3 Months Ended

Mar. 31, 2024

Revenue Recognition [Abstract]

REVENUE RECOGNITION

NOTE 6 – REVENUE RECOGNITION

The company derives revenue from technical research detailing the findings of its investigations to its customers under contract for specific projects. Under Topic 606, revenue is recognized when control of promised goods and services is transferred to customers, and the amount of revenue recognized reflects the consideration to which an entity expects to be entitled in exchange for the goods and services transferred. A performance obligation is a contractual promise to transfer a distinct good or service to the customer and is the unit of account under Topic 606. The transaction price of a contract is allocated to distinct performance obligations and recognized as revenue when or as the performance obligations are satisfied. The company’s contracts require significant integrated services and are accounted for as a single performance obligation, and revenue is recognized by the company over the contract term at a fixed contract price.

During the three months ended March 31, 2024, the Company modified its contract with a customer for changes in the contract specifications and requirements. The modification was for services that are not distinct from the existing contract due to the significant integration of services performed. The modification was accounted for as if it was part of the existing contract and a cumulative catch-up adjustment was recorded for the three months ended March 31, 2024.

Contract modifications are routine in the performance of our contracts. Contracts are often modified to account for changes in the contract specifications or requirements. In most instances, contract modifications are for goods or services that are not distinct, and, therefore, are accounted for as part of the existing contract.

The following table summarizes the company’s accounts receivable, net,

	March 31, 2024		December 31, 2023
Accounts receivable	$	316,697	$	153,029
Unbilled receivable		-		414,763
Total	$	316,697	$	567,792

Concentrations

During the three months ended March 31, 2024, the company earned revenue from three contracts with three separate customers. The three customers accounted for a total of $134,235 in revenue or 100% of revenue recognized during the period. As of March 31, 2024, the company has $316,697 or 100% of accounts receivable recorded as current assets on the balance sheet related to these customers. During the three months ended March 31, 2023, the company earned revenue from one contract with one customer. The customer accounted for $486,678 or 100% of revenue recognized during the period. As of March 31, 2023, the company had $324,452 of accounts receivable recorded as current assets on the balance sheet related to this customer.