Quarterly report pursuant to Section 13 or 15(d)

REVENUE

REVENUE

6 Months Ended

Jun. 30, 2018

Revenue from Contract with Customer [Abstract]

NOTE 3 – REVENUE

The Company adopted the provisions of the guidance in the new revenue standard under ASC 606 effective January 1, 2018 applying the modified retrospective method to all contracts. Results for reporting periods beginning after January 1, 2018 are presented under the new revenue recognition guidance, while prior period amounts are not adjusted and continue to be reported in accordance with the historic accounting under previous revenue recognition guidance. The adoption of this guidance did not have any material impact on the Company’s consolidated condensed financial statements. There was no impact to net revenue for the quarter ended June 30, 2018 as a result of applying the new revenue recognition guidance.

Products Revenue

Product revenue generated from contracts with customers, for the manufacture of products for the removal and treatment of hazardous vapor and gasses. Total estimated revenue includes all of the following: (1) the basic contract price, (2) contract options, and (3) change orders. Once contract performance is underway, we may experience changes in conditions, client requirements, specifications, designs, materials and expectations regarding the period of performance. Such changes are “change orders” and may be initiated by us or by our clients. In many cases, agreement with the client as to the terms of change orders is reached prior to work commencing; however, sometimes circumstances require that work progress without obtaining client agreement. Revenue related to change orders is recognized as costs are incurred if it is probable that costs will be recovered by changing the contract price. The Company does not incur pre-contract costs. Under the new revenue recognition guidance, we found no change in the manner we recognize product revenue. Provisions for estimated losses on uncompleted contracts are recorded in the period in which the losses are identified and included as additional loss. Provisions for estimated losses on contracts are shown separately as liabilities on the balance sheet, if significant, except in circumstances in which related costs are accumulated on the balance sheet, in which case the provisions are deducted from the accumulated costs. A provision as a liability is reported as a current liability.

We include in current assets and current liabilities amounts related to contracts realizable and payable. Costs and estimated earnings in excess of billings on uncompleted contracts represent the excess of contract costs and profits recognized to date over billings to date and are recognized as a current asset. Revenue contract liabilities represent the excess of billings to date over the amount of contract costs and profits recognized to date and are recognized as a current liability.

Products revenue also includes media sales which are recognized as the product is shipped to the customer for use.

Services Revenue

Our services revenue is primarily comprised of services related to industrial cleaning and mobile railcar cleaning, which we recognize as services are rendered.

Solid Waste Revenue

The Company’s revenues from waste destruction licensing agreements are recognized as a single accounting unit over the term of the license. Revenue from joint venture operations of the Company’s CoronaLux™ units is recognized as the revenue is earned by the joint venture. Revenue from management services is recognized as services are performed.

Disaggregation of Revenue

	Three months ended June 30, 2018
	Industrial Cleaning		Environmental Solutions		Solid Waste		Total
Sources of Revenue
Industrial cleaning services	$	219,500	$	—	$	—	$	219,500
Mobile rail car cleaning services		577,300		—		—		577,300
Product sales		—		716,200		—		716,200
Media sales		—		827,500		—		827,500
Licensing fees		—		—		33,700		33,700
Operating fees		—		—		4,300		4,300
Management fees		—		—		50,000		50,000
Total Revenue	$	796,800	$	1,543,700	$	88,000	$	2,428,500

	Three months ended June 30, 2017
	Industrial Cleaning		Environmental Solutions		Solid Waste		Total
Sources of Revenue
Industrial cleaning services	$	555,500	$	—	$	—	$	555,500
Product sales		—		1,510,900		—		1,510,900
Media sales		—		351,600		—		351,600
Licensing fees		—		—		47,100		47,100
Operating fees		—		—		27,400		27,400
Total Revenue	$	555,500	$	1,862,500	$	74,500	$	2,492,500

	Six months ended June 30, 2018
	Industrial Cleaning		Environmental Solutions		Solid Waste		Total
Sources of Revenue
Industrial cleaning services	$	749,200	$	—	$	—	$	749,200
Mobile rail car cleaning services		970,800		—		—		970,800
Product sales		—		1,098,300		—		1,098,300
Media sales		—		1,320,900		—		1,320,900
Licensing fees		—		—		67,400		67,400
Operating fees		—		—		18,000		18,000
Management fees		—		—		100,000		100,000
Total Revenue	$	1,720,000	$	2,419,200	$	185,400	$	4,324,600

	Six months ended June 30, 2017
	Industrial Cleaning		Environmental Solutions		Solid Waste		Total
Sources of Revenue
Industrial cleaning services	$	1,390,000	$	—	$	—	$	1,390,000
Product sales		—		2,888,100		—		2,888,100
Media sales		—		663,400		—		663,400
Licensing fees		—		—		94,300		94,300
Operating fees		—		—		49,600		49,600
Total Revenue	$	1,390,000	$	3,551,500	$	143,900	$	5,085,400

Contract Balances

Where a performance obligation has been satisfied but not yet invoiced at the reporting date, a contract asset is recognized on the balance sheet. Where a performance obligation has not yet been satisfied but an invoice has been raised at the reporting date, a contract liability is recognized on the balance sheet.

The opening and closing balances of the Company’s accounts receivables and contract liabilities (current and non-current) are as follows:

			Contract Liabilities
	Accounts Receivable, net		Revenue Contract Liabilities		Deferred Revenue (current)			Deferred Revenue (non-current)

Balance as of June 30, 2018	$	1,262,600	$	550,100	$	128,000		$	76,900

Balance as of December 31, 2017		692,400		227,300		304,200			113,100

Increase (decrease)	$	570,200	$	322,800	($	176,200	)	($	36,200	)

The majority of the Company’s revenue is generally invoiced on a weekly or monthly basis, and the payments are generally received within approximately 30-60 days. Deferred revenue is recorded when cash payments are received or due in advance of the Company’s performance, including amounts that are refundable.

Remaining Performance Obligations

As of June 30, 2018, the aggregate amount of the transaction price allocated to the remaining performance obligations was approximately $731,000, of which the Company expects to recognize revenue of approximately 94% over the next 24 months, including 89% over the next 12 months.

The Company does not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected term of one year or less and (ii) contracts for which the Company recognizes revenue at the amounts to which it has the right to invoice for services performed.