Contracts with Customers and Revenue Concentration |
3 Months Ended |
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Mar. 31, 2024 | |
| Revenue from Contract with Customer [Abstract] | |
| Contracts with Customers and Revenue Concentration | Contracts with Customers and Revenue Concentration Concentration of Credit Risk and Accounts Receivable
Crown Electrokinetics Corp. assesses and monitors the creditworthiness of its customers continually and maintains an allowance for estimated credit losses based on historical experience, current conditions, and reasonable and supportable forecasts. As of March 31, 2024, the Company had accounts receivable of $776,000, net of an allowance for doubtful accounts, compared to $83,000 as of December 31, 2023. The significant increase in receivables is primarily due to increased activity in fiber splicing services and extended payment terms offered to certain customers.
No single customer accounted for 10% or more of the net accounts receivable balance as of March 31, 2024, and no significant concentrations of credit risk were noted.
Deferred Revenue and Transaction Price Allocated to Remaining Performance Obligations
As of March 31, 2024, Crown Electrokinetics Corp. has recorded deferred revenue totaling $1.3 million. This amount represents the advance payments received under the Fixed Price Construction Agreement with Vista Serena, S. de R.L. de C.V., dated March 1, 2024. The contract stipulates the construction of two slant wells at Santa Maria Bay, with Crown Fiber Optics Corp. serving as the contractor.
The total contract price is $3.6 million, of which an advance payment of $1.3 million collected as of March 31, 2024. The revenue associated with this project is expected to be recognized as Crown Fiber Optics Corp. fulfills its performance obligations under the contract, specifically as construction milestones are completed in accordance with the agreed project schedule.
Approximately $2.3 million of the contract price is anticipated to be recognized within the next 12 months as construction progresses. This projection includes considerations for potential adjustments such as material changes or force majeure events that could alter the timing of revenue recognition. The remaining balance will be recognized as the final stages of the project are completed, with the entire project expected to be finalized by the date specified in the project schedule, unless modifications are necessitated by unforeseen circumstances as outlined in the agreement. Revenue is expected to be recognized based on the costs incurred relative to the total estimated costs at completion, following the percentage of completion method.
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