Quarterly report pursuant to Section 13 or 15(d)

REVENUE

v3.23.3
REVENUE
9 Months Ended
Sep. 30, 2023
Revenue:  
REVENUE

NOTE 3 – REVENUE

 

Products Revenue

 

Product revenue generated from contracts with customers, for the manufacture of products for the removal and treatment of hazardous vapor and gases. 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, the Company found no change in the manner product revenue is recognized. 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.

 

 

Disaggregation of Revenue (Unaudited)

 

    Environmental Solutions     Solid Waste     Total  
    Three months ended September 30, 2023  
    Environmental Solutions     Solid Waste     Total  
                   
Sources of Revenue                        
Product sales   $ 673,100     $ -     $ 673,100  
Media sales     197,200       -       197,200  
Total Revenue   $ 870,300     $           -     $ 870,300  

 

    Environmental Solutions     Solid Waste     Total  
    Three months ended September 30, 2022  
    Environmental Solutions     Solid Waste     Total  
                   
Sources of Revenue                        
Product sales     904,300       -       904,300  
Media sales     238,100       -       238,100  
Management fees     -       -       -  
Total Revenue   $ 1,142,400     $         -     $ 1,142,400  

 

    Environmental Solutions     Solid Waste     Total  
    Nine months ended September 30, 2023  
    Environmental Solutions     Solid Waste     Total  
                   
Sources of Revenue                        
Product sales   $ 1,536,000     $ -     $ 1,536,000  
Media sales     618,700       -       618,700  
Total Revenue   $ 2,154,700     $           -     $ 2,154,700  

 

    Environmental Solutions     Solid Waste     Total  
    Nine months ended September 30, 2022  
    Environmental Solutions     Solid Waste     Total  
Sources of Revenue                  
Product sales   $ 2,310,700       -     $ 2,310,700  
Media sales     641,400       -       641,400  
Management fees     -       100,000       100,000  
Total Revenue   $ 2,952,100     $ 100,000     $ 3,052,100  

 

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,     Contract     Contract     Deferred Revenue     Deferred Revenue  
    net     Assets     Liabilities     (current)     (non-current)  
Balance as of September 30, 2023 (unaudited)   $ 390,800     $ 17,300     $ 656,800     $ 14,600     $ -  
                                         
Balance as of December 31, 2022     640,500       138,700       536,000       -       -  
                                                        
Increase (decrease)   $ (249,700 )   $ (121,400 )   $ 120,800     $ 14,600     $ -  

 

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. Contract liabilities are 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 September 30, 2023, the aggregate amount of the transaction price allocated to the remaining performance obligations was approximately $1.0 million, of which the Company expects to recognize approximately 85% of this revenue 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.