Sidus Space Inc. Revenue Disclosure
Note 10. Contract assets and liabilities
At December 31, 2023 and 2022, contract assets and contract liabilities consisted of the following:
| Contract assets | December 31, 2023 | December 31, 2022 | ||||||
| Revenue recognized in excess of amounts paid or payable (contracts receivable) to the company on uncompleted contracts (contract asset), excluding retainage | $ | $ | ||||||
| Retainage included in contract assets due to being conditional on something other than solely passage of time | 77,124 | 60,932 | ||||||
| Retainage included in contract assets due to being conditional on something other than solely passage of time – related party | 43,173 | 14,982 | ||||||
| Total contract assets | $ | 120,297 | $ | 75,914 | ||||
| Contract liabilities | December 31, 2023 | December 31, 2022 | ||||||
| Payments received or receivable (contracts receivable) in excess of revenue recognized on uncompleted contracts (contract liability), excluding retainage | $ | $ | ||||||
| Retainage included in contract liabilities due to being conditional on something other than solely passage of time | 77,124 | 60,932 | ||||||
| Retainage included in contract liabilities due to being conditional on something other than solely passage of time – related party | 43,173 | 14,982 | ||||||
| Total contract liabilities | $ | 120,297 | $ | 75,914 | ||||
About Revenue Disclosures
Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.
Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.