XML 22 R10.htm IDEA: XBRL DOCUMENT
v3.25.4

Note 3 - Revenue Recognition | 9 Months Ended
--- | ---
Dec. 31, 2025
Notes to Financial Statements |
Revenue from Contract with Customer [Text Block] | 3. Revenue Recognition The Company’s revenues in its Grid segment are derived primarily through enabling the transmission and distribution of power, providing planning services that allow it to identify power grid needs and risks, and developing ship protection systems for the U.S. Navy. The Company’s revenues in its Wind segment are derived primarily through supplying advanced power electronics and control systems, licensing its highly engineered wind turbine designs, and providing extensive customer support services to wind turbine manufacturers. The Company records revenue based on a five-step model in accordance with Accounting Standards Codification ("ASC") 606. For its customer contracts, the Company identifies the performance obligations, determines the transaction price, allocates the contract transaction price to the performance obligations, and recognizes the revenue when (or as) control of goods or services is transferred to the customer. For the three and nine months ended December 31, 2025, 86% and 89%, respectively, of revenue was recognized at the point in time when control transferred to the customer, with the remainder being recognized over time. For the three and nine months ended December 31, 2024, 87% and 88%, respectively, of revenue was recognized at the point in time when control transferred to the customer, with the remainder being recognized over time. In the Company's equipment and system product line, each contract with a customer summarizes each product sold to a customer, which typically represents distinct performance obligations. A contract's transaction price is allocated to each distinct performance obligation using the respective standalone selling price which is determined primarily using the cost-plus expected margin approach and recognized as revenue when, or as, the performance obligation is satisfied. The majority of the Company’s product sales transfer control to the customer in line with the contracted delivery terms and revenue is recorded at the point in time when title and risk transfer to the customer, which is primarily upon delivery, as the Company has determined that this is the point in time that control transfers to the customer. In the Company's service and technology development product line, there are several different types of transactions and each begins with a contract with a customer that summarizes each product sold to a customer, which typically represents distinct performance obligations. The technology development transactions are primarily for activities that have no alternative use and for which a profit can be expected throughout the life of the contract. In these cases, the revenue is recognized over time, but in the instances where the profit cannot be assured throughout the entire contract then the revenue is recognized at a point in time. Each contract's transaction price is allocated to each distinct performance obligation using the respective standalone selling price which is determined primarily using the cost-plus expected margin approach. The ongoing service transactions are for service contracts that provide benefit to the customer simultaneously as the Company performs its obligations, and therefore this revenue is recognized ratably over time throughout the effective period of these contracts. The transaction prices on these contracts are allocated based on an adjusted market approach which is re-assessed annually for reasonableness. The field service transactions include contracts for delivery of goods and completion of services made at the customer's requests, which are not deemed satisfied until the work has been completed and/or the requested goods have been delivered, so all of this revenue is recognized at the point in time when the control changes, and at allocated prices based on the adjusted market approach driven by standard price lists. The royalty transactions are related to certain contract terms on transactions in the Company's equipment and systems product line based on activity as specified in the contracts. The transaction prices of these agreements are calculated based on an adjusted market approach as specified in the contract. The Company reports royalty revenue for usage-based royalties when the sales have occurred. In circumstances when collectability is not assured and a contract does not exist under ASC 606, revenue is deferred until a non-refundable payment has been received for substantially all the amount that is due and there are no further remaining performance obligations. The Company's service contracts can include a purchase order from a customer for specific goods in which each item is a distinct performance obligation satisfied at a point in time at which control of the goods is transferred to the customer. This transfer occurs based on the contracted delivery terms or when the requested service work has been completed. The transaction price for these goods is allocated based on the adjusted market approach considering similar transactions under similar circumstances. Service contracts are also derived from ongoing maintenance contracts and extended service-type warranty contracts. In these transactions, the Company is contracted to provide an ongoing service over a specified period of time. As the customer is consuming the benefits as the service is being provided, the revenue is recognized over time ratably. The Company’s policy is not to accept volume discounts, product returns, or rebates and allowances within its contracts. In the event a contract was approved with any of these terms, it would be evaluated for variable consideration, estimated and recorded as a reduction of revenue in the same period the related product revenue was recorded. The Company provides assurance-type warranties on all product sales for a term of typically one to three years, and extended service-type warranties are available for purchase at the customer's option for an additional term ranging up to four additional years. The Company accrues for the estimated warranty costs for assurance warranties at the time of sale based on historical warranty experience plus any known or expected changes in warranty exposure. For all extended service-type warranties, the Company recognizes the revenue ratably over time during the effective period of the services. Infrequently, the Company receives requests from customers to hold product being purchased from us for a valid business purpose. The Company recognizes revenues for such arrangements provided the transaction meets, at a minimum, the following criteria: the reason for the bill-and-hold arrangement must be substantive; the product must be identified separately as belonging to the customer; the product currently must be ready for physical transfer to the customer; the entity cannot have the ability to use the product or to direct it to another customer. Revenue for the nine months ended December 31, 2025 included $7.9 million from such held transactions. There were no such transactions for the three months ended December 31, 2025 and the three and nine months ended December 31, 2024. The Company records revenue net of sales tax, value added tax, excise tax and other taxes collected concurrent with revenue-producing activities. The Company has elected to recognize the cost for freight and shipping when control over the products sold passes to customers and revenue is recognized. The Company has elected to recognize incremental costs of obtaining a contract as expense when incurred except in contracts where the amortization period would exceed twelve months. As of December 31, 2025 and March 31, 2025, the Company's capitalized incremental contract costs were not material. The Company has elected not to adjust the promised amount of consideration for the effects of a significant financing component if the period of financing is twelve months or less. The Company has elected to recognize revenue based on the as invoiced practical expedient if there is a right to consideration from a customer in an amount that corresponds directly with the value of the Company's performance. The Company’s contracts with customers do not typically include extended payment terms and may include milestone billing over the life of the contract. Payment terms vary by contract type and type of customer and generally range from 30 to 60 days from delivery. The following tables disaggregate the Company’s revenue by product line and by shipment destination (in thousands):
|  | Three Months Ended December 31, 2025 |  |  | Nine Months Ended December 31, 2025 |
Product Line: |  | Grid |  |  | Wind |  |  | Grid |  |  | Wind |
Equipment and systems |  | $ | 56,004 |  |  | $ | 143 |  |  | $ | 156,300 |  |  | $ | 445 |
Services and technology development |  |  | 7,183 |  |  |  | 11,199 |  |  |  | 21,316 |  |  |  | 34,688 |
Total |  | $ | 63,187 |  |  | $ | 11,342 |  |  | $ | 177,616 |  |  | $ | 35,133 |
Region: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Americas |  | $ | 51,974 |  |  | $ | — |  |  | $ | 137,394 |  |  | $ | 16 |
Asia Pacific |  |  | 7,253 |  |  |  | 11,326 |  |  |  | 29,583 |  |  |  | 35,022 |
EMEA |  |  | 3,960 |  |  |  | 16 |  |  |  | 10,639 |  |  |  | 95 |
Total |  | $ | 63,187 |  |  | $ | 11,342 |  |  | $ | 177,616 |  |  | $ | 35,133 |
|  | Three Months Ended December 31, 2024 |  |  | Nine Months Ended December 31, 2024 |
Product Line: |  | Grid |  |  | Wind |  |  | Grid |  |  | Wind |
Equipment and systems |  | $ | 48,979 |  |  | $ | 8,768 |  |  | $ | 123,431 |  |  | $ | 23,357 |
Services and technology development |  |  | 3,327 |  |  |  | 329 |  |  |  | 8,147 |  |  |  | 1,228 |
Total |  | $ | 52,306 |  |  | $ | 9,097 |  |  | $ | 131,578 |  |  | $ | 24,585 |
Region: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Americas |  | $ | 47,737 |  |  | $ | - |  |  | $ | 121,696 |  |  | $ | 1 |
Asia Pacific |  |  | 2,293 |  |  |  | 9,080 |  |  |  | 4,280 |  |  |  | 24,562 |
EMEA |  |  | 2,276 |  |  |  | 17 |  |  |  | 5,602 |  |  |  | 22 |
Total |  | $ | 52,306 |  |  | $ | 9,097 |  |  | $ | 131,578 |  |  | $ | 24,585 |
As of December 31, 2025 and 2024, the Company’s contract assets and liabilities primarily relate to the timing differences between cash received from a customer in connection with contractual rights to invoicing and the timing of revenue recognition following completion of performance obligations. The Company's accounts receivable balance is made up entirely of customer contract related balances. Changes in the Company’s contract assets, which are included in “Unbilled accounts receivable” and “Deferred program costs” (see Note 8, “Accounts Receivable” and Note 9, “Inventory” for a reconciliation to the condensed consolidated balance sheets) and "Contract liabilities", which are included in the current portion and long-term portion of "Deferred revenue" in the Company’s condensed consolidated balance sheets, are as follows (in thousands):
|  | Unbilled Accounts Receivable |  |  | Deferred Program Costs |  |  | Contract Liabilities |
Beginning balance as of March 31, 2025 |  | $ | 6,376 |  |  | $ | 5,757 |  |  | $ | 76,133 |
Increase for balance acquired |  |  | — |  |  |  | — |  |  |  | 19,783 |
Increases for costs incurred to fulfill performance obligations |  |  | — |  |  |  | 23,174 |  |  |  | — |
Increase (decrease) due to customer billings |  |  | (15,991 | ) |  |  | — |  |  |  | 81,667 |
Decrease due to cost recognition on completed performance obligations |  |  | — |  |  |  | (21,767 | ) |  |  | — |
Increase (decrease) due to recognition of revenue based on transfer of control of performance obligations |  |  | 22,399 |  |  |  | — |  |  |  | (88,591 | )
Other changes and FX impact |  |  | 12 |  |  |  | (1 | ) |  |  | 371 |
Ending balance as of December 31, 2025 |  | $ | 12,796 |  |  | $ | 7,163 |  |  | $ | 89,363 |
|  | Unbilled Accounts Receivable |  |  | Deferred Program Costs |  |  | Contract Liabilities |
Beginning balance as of March 31, 2024 |  | $ | 6,150 |  |  | $ | 2,523 |  |  | $ | 57,829 |
Increase for balances acquired |  |  | — |  |  |  | — |  |  |  | 5,049 |
Increases for costs incurred to fulfill performance obligations |  |  | — |  |  |  | 10,876 |  |  |  | — |
Increase (decrease) due to customer billings |  |  | (7,139 | ) |  |  | — |  |  |  | 96,400 |
Decrease due to cost recognition on completed performance obligations |  |  | — |  |  |  | (6,133 | ) |  |  | — |
Increase (decrease) due to recognition of revenue based on transfer of control of performance obligations |  |  | 6,120 |  |  |  | — |  |  |  | (75,410 | )
Other changes and FX impact |  |  | (18 | ) |  |  | (11 | ) |  |  | (540 | )
Ending balance as of December 31, 2024 |  | $ | 5,113 |  |  | $ | 7,255 |  |  | $ | 83,328 |
The Company’s remaining performance obligations represent the unrecognized revenue value of the Company’s contractual commitments. The Company’s performance obligations may vary significantly each reporting period based on the timing of major new contractual commitments. As of December 31, 2025, the Company had outstanding performance obligations on existing contracts under ASC 606 to be recognized in the next twelve months of approximately $253.5 million. There are also approximately $99.7 million of outstanding performance obligations to be recognized over a period of thirteen to sixty months. The remaining performance obligations are subject to customer actions and therefore the timing of revenue recognition cannot be reasonably estimated. The following table sets forth customers who represented 10% or more of the Company’s total revenues for the three and nine months ended December 31, 2025, and 2024:
|  |  | Three Months Ended |  |  | Nine Months Ended |
| Reportable |  | December 31, |  |  | December 31, |
| Segment |  | 2025 |  |  | 2024 |  |  | 2025 |  |  | 2024 |
Inox Wind Limited | Wind |  |  | 14 | % |  |  | 10 | % |  |  | 15 | % |  |  | 13 | %
Innomotics LLC | Grid |  |  | <10% |  |  |  | 14 | % |  |  | <10% |  |  |  | <10% |
Fuji Bridex Pte Ltd | Grid |  |  | <10% |  |  |  | <10% |  |  |  | 11 | % |  |  | <10% |

X
- References No definition available. + Details
Name: | us-gaap_DisclosureTextBlockAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 7 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-7 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 9 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-9 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 10 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-10 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-15 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Subparagraph (b)(2) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-13 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Name Accounting Standards Codification -Topic 606 -Publisher FASB -URI https://asc.fasb.org/606/tableOfContent + Details
Name: | us-gaap_RevenueFromContractWithCustomerTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration