v3.23.1
REVENUE RECOGNITION
 3 Months Ended
Mar. 31, 2023
Revenue from Contract with Customer [Abstract]  
REVENUE RECOGNITION

21. REVENUE RECOGNITION:

The Company recognizes revenue in accordance with ASC Topic 606, Revenue from Contracts with Customers (Topic 606). The standard establishes the principles that an entity shall apply to report useful information to users of financial statements about the nature, amount, timing, and uncertainty of revenue and cash flows from a contract with a customer.

For the three months ended March 31, 2023 and 2022, the Company recorded 96% and 97%, respectively, of its revenue from OLED related sales and 4% and 3%, respectively, from the providing of services through Adesis.

Contract Balances

The following table provides information about assets and liabilities associated with our contracts from customers (in thousands):

 

 

 

As of March 31, 2023

 

Accounts receivable

 

$

92,677

 

Short-term unbilled receivables

 

 

15,968

 

Short-term contract assets

 

 

2,541

 

Long-term contract assets

 

 

11,323

 

Short-term deferred revenue

 

 

37,419

 

Long-term deferred revenue

 

 

17,843

 

 

Short-term and long-term unbilled receivables and contract assets are classified as other current assets and other assets, respectively, on the Consolidated Balance Sheets. The deferred revenue balance as of March 31, 2023 will be recognized as materials are shipped to customers over the remaining contract periods. As of March 31, 2023, the Company had $19.6 million of backlog associated with committed purchase orders from its customers for phosphorescent emitter material. These orders are anticipated to be fulfilled within the next 90 days.

Significant changes in the assets and liabilities balances associated with the Company's contracts from customers for the three months ended March 31, 2023 and 2022 are as follows (in thousands):

 

 

 

Three Months Ended March 31, 2023

 

 

 

Assets

 

 

Liabilities

 

Balance at December 31, 2022

 

$

38,457

 

 

$

(63,878

)

Revenue recognized that was previously included in deferred revenue, net

 

 

—

 

 

 

41,086

 

Increases due to cash received

 

 

—

 

 

 

(38,153

)

Cumulative catch-up adjustment arising from changes in estimates of
   transaction price, net

 

 

—

 

 

 

5,683

 

Unbilled receivables recorded, net

 

 

11,878

 

 

 

—

 

Contract assets recorded, net

 

 

(520

)

 

 

—

 

Transferred to receivables from unbilled receivables

 

 

(19,983

)

 

 

—

 

Net change

 

 

(8,625

)

 

 

8,616

 

Balance at March 31, 2023

 

$

29,832

 

 

$

(55,262

)

 

 

 

Three Months Ended March 31, 2022

 

 

 

Assets

 

 

Liabilities

 

Balance at December 31, 2021

 

$

8,127

 

 

$

(157,081

)

Revenue recognized that was previously included in deferred revenue, net

 

 

—

 

 

 

57,594

 

Increases due to cash received

 

 

—

 

 

 

(45,891

)

Cumulative catch-up adjustment arising from changes in estimates of
   transaction price, net

 

 

—

 

 

 

1,865

 

Unbilled receivables recorded, net

 

 

4,647

 

 

 

—

 

Net change

 

 

4,647

 

 

 

13,568

 

Balance at March 31, 2022

 

$

12,774

 

 

$

(143,513

)

 

The cumulative catch-up adjustment arising from changes in estimates of transaction price, net for the three months ended March 31, 2023 increased by $3.8 million as compared to the three months ended March 31, 2022. The increase in the cumulative catch-up adjustment arising from changes in estimates of transaction price, net was primarily due to a decrease in anticipated customer demand over their remaining contract lives.