Annual report pursuant to Section 13 and 15(d)

Revenue

Revenue

12 Months Ended

Dec. 31, 2019

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 financial statements. There was no impact to net revenue for the December 31, 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, the Company 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.

The Company includes 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. These lines of business have been included in discontinued operations as of December 31, 2019, and 2018, respectively.

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

	Year ended December 31, 2019
	Industrial Cleaning		Environmental Solutions		Solid Waste		Total

Sources of Revenue
Product sales		-		2,952,100		-		2,952,100
Media sales		-		1,100,800		-		1,100,800
Licensing fees		-		-		49,900		49,900
Operating fees		-		-		-		-
Management fees		-		-		200,000		200,000
Total Revenue - Continuing operations		-		4,052,900		249,900		4,302,800

Industrial cleaning services – Discontinued operations		1,661,500		-		-		1,661,500

Total Revenue	$	1,661,500	$	4,052,900	$	249,900	$	5,964,300

	Year ended December 31, 2018
	Industrial Cleaning		Environmental Solutions		Solid Waste		Total

Sources of Revenue
Product sales		-		3,237,900		-		3,237,900
Media sales		-		1,663,000		-		1,663,000
Licensing fees		-		-		134,800		134,800
Operating fees		-		-		34,400		34,400
Management fees		-		-		200,000		200,000
Total Revenue - Continuing operations		-		4,900,900		369,200		5,270,100

Industrial cleaning services		1,897,600		-		-		1,897,600
Mobile rail car cleaning services		1,049,200		-		-		1,049,200
Total Revenue - Discontinued operations	$	2,946,800	$	-	$	-	$	2,946,800

Total Revenue	$	2,946,800	$	4,900,900	$	369,200	$	8,216,900

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 December 31, 2019	$	686,800		$	327,100		$	32,900		$	30,200

Balance as of December 31, 2018		1,063,500			470,200			191,500			63,200

Decrease	$	(376,700	)	$	(143,100	)	$	(158,600	)	$	(33,000	)

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 December 31, 2019, the aggregate amount of the transaction price allocated to the remaining performance obligations was approximately $1.1 million, of which the Company expects to recognize 100% over the next 24 months, including 97% 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.