Company: LASR
Filing Date: 2025-05-09
Form Type: 10-Q
Source: 0001124796-25-000053
Chunk: 2

Company: NLIGHT, INC.
Filing Date: 2025-05-09
Form: 10-Q
Item: Part I, Item 8
Chunk 2
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 consist of development arrangements that are structured based on our costs incurred. For long-term contracts, we estimate the total expected costs to complete the contract and recognize revenue based on the percentage of costs incurred at period end. Typically, revenue is recognized over time using costs incurred to date relative to total estimated costs at completion to measure progress toward satisfying our performance obligations. Incurred costs represent work performed, which corresponds with, and thereby best depicts, the transfer of control to the customer. Contract costs include labor, materials, subcontractors costs, other direct costs, and indirect costs applicable on government and commercial contracts.Contract estimates are based on various assumptions to project the outcome of future events that may span severalyears. These assumptions include labor productivity and availability, the complexity of the work to be performed, the cost and availability of materials, the performance of subcontractors, and the availability and timing of funding from the customer. Billing under these arrangements generally occurs within one month of the costs being incurred or as milestones are reached.The following tables represent a disaggregation of revenue from contracts with customers for the periods presented (in thousands):    Sales by End MarketThree Months Ended March 31, 20252024Industrial$8,856 $11,985 Microfabrication10,106 10,797 Aerospace and Defense32,706 21,745 $51,668 $44,527 Sales by GeographyThree Months Ended March 31, 20252024North America$36,085 $28,724 Asia Pacific9,128 10,034 EMEA(1)6,455 5,769 $51,668 $44,527 (1) EMEA consists of Europe, the Middle East, and Africa.Sales by Timing of RevenueThree Months Ended March 31, 20252024Point in time$35,680 $29,356 Over time15,988 15,171 $51,668 $44,527 

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Our contract assets and liabilities were as follows (in thousands):Balance Sheet ClassificationAs of March 31, 2025December 31, 2024Contract assetsPrepaid expenses and other current assets$9,596 $14,510 Contract liabilitiesDeferred revenues and other long-term liabilities6,396 6,845 Contract assets generally consist of revenue recognized on an over-time basis where revenue recognition has been met, but the amounts are billed and collected in a subsequent period. In our services contracts,