Company: LASR
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0001124796-25-000021
Chunk: 53

Company: NLIGHT, INC.
Filing Date: 2025-02-28
Form: 10-K
Item: Item 8
Chunk 53
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 generally utilized to pay for contract costs within a one-year period or are used to ensure the customer meets contractual requirements. These assets and liabilities are reported on the Consolidated Balance Sheets on a contract-by-contract basis at the end of each reporting period. For our product revenue, we generally receive cash payments subsequent to satisfying the performance obligation via delivery of the product, resulting in billed accounts receivable. For our contracts, there are no significant gaps in timing between the receipt of payment and the transfer of the associated goods and services to the customer for material amounts of consideration.

47

The changes in contract assets and liabilities primarily results from timing differences between revenue recognition and customer billings and/or payments. During the years ended December 31, 2024 and 2023, we recognized revenue of $4.3 million and $1.5 million, respectively, that was included in the deferred revenue balances at the beginning of the period as the performance obligations under the associated agreements were satisfied.

Note 3 - Concentrations of Credit and Other Risks 

The following customers accounted for 10% or more of our revenues for the periods presented: Year Ended December 31,202420232022U.S. Government*19%18%17%KORD Technologies12%(1)(1)Raytheon Technologies10%(1)(1)*Excludes sales to customers who sell our products and services exclusively to the U.S. Government(1) Represents less than 10% of total revenues.

Financial instruments that potentially expose us to concentrations of credit risk consist principally of receivables from customers. As of December 31, 2024 and December 31, 2023, two customers accounted for a total of 24% and 24%, respectively, of net customer receivables. No other customers accounted for 10% or more of net customer receivables at either date. 

Note 4 - Accounts Receivable

Trade accounts receivable are recorded at the invoiced amount and do not bear interest. The allowance for doubtful accounts is our best estimate of the amount of probable credit losses in our existing accounts receivable. We determine the allowance based on historical write-off experience and knowledge of any applicable circumstances.Activity related to the allowance for doubtful accounts was as follows for the periods presented (in thousands):Year Ended December 31,202420232022Allowance for doubtful accounts, beginning$315 $290 $303 Provision for losses on accounts receivable1,520 27 27 Write-offs,