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REVENUE RECOGNITION
 3 Months Ended
Mar. 31, 2024
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, 2024 and 2023, the Company recorded 98% and 96%, respectively, of its revenue from OLED related sales and 2% and 4%, 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, 2024

 

Accounts receivable

 

$

119,584

 

Short-term unbilled receivables

 

 

22,440

 

Long-term unbilled receivables

 

 

10,278

 

Short-term contract assets

 

 

2,747

 

Long-term contract assets

 

 

8,688

 

Short-term deferred revenue

 

 

19,157

 

Long-term deferred revenue

 

 

13,292

 

 

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. Contract assets represent consideration related to the renewal of customer contracts which is recognized over the contract term based on material units sold. The deferred revenue balance as of March 31, 2024 will be recognized as materials are shipped to customers over the remaining contract periods. As of March 31, 2024, the Company had $35.9 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, 2024 and 2023 are as follows (in thousands):

 

 

 

Three Months Ended March 31, 2024

 

 

 

Assets

 

 

Liabilities

 

Balance at December 31, 2023

 

$

42,134

 

 

$

(59,719

)

Revenue recognized that was previously included in deferred revenue, net

 

 

—

 

 

 

61,095

 

Increases due to cash received

 

 

—

 

 

 

(33,323

)

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

 

 

—

 

 

 

(502

)

Unbilled receivables recorded, net

 

 

2,560

 

 

 

—

 

Contract assets recorded, net

 

 

(541

)

 

 

—

 

Net change

 

 

2,019

 

 

 

27,270

 

Balance at March 31, 2024

 

$

44,153

 

 

$

(32,449

)

 

 

 

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

)

 

The cumulative catch-up adjustment recorded to revenue arising from changes in estimates of transaction price, net was a reduction of $502,000 for three months ended March 31, 2024 as compared to an increase of $5.7 million for the three months ended March 31, 2023. For the three months ended March 31, 2023, the adjustment resulted from an increase in the average price per gram that was primarily due to the decrease in anticipated demand by several of the Company's customers over the remaining lives of their contracts, resulting from changes in global macroeconomic factors.