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Revenue
 9 Months Ended
Sep. 30, 2024
Revenue from Contract with Customer [Abstract]  
Revenue

NOTE 4. REVENUE

Revenue is recognized as, or when, the performance obligations are satisfied. The Company generates revenue primarily from three revenue streams: (i) product revenues, (ii) service revenues; and (iii) rental revenues. We sell or rent our products and provide services primarily in onshore U.S. and Canadian (“NAM”) markets and in international and offshore (“International and Offshore”) markets. We attribute rental and service revenue to the country in which the rental or service was performed, while we attribute product sales revenue to the country to which the product was shipped. The Company has elected the practical expedient to expense commissions as the amortization period associated with the asset that would have been recognized for each order is one year or less. Rental revenue as presented in the table below is accounted for under the lease guidance according to Accounting Standards Codification Topic 842 Leases and recognized ratably over the term of the lease.

The following tables present our revenues disaggregated by category and by geography:

 

 

Three Months Ended September 30, 2024

 

 

Three Months Ended September 30, 2023

 

(in thousands)

 

NAM

 

 

INTL &
Offshore

 

 

Total

 

 

NAM

 

 

INTL &
Offshore

 

 

Total

 

Product revenues

 

$

79,668

 

 

$

46,975

 

 

$

126,643

 

 

$

76,050

 

 

$

39,751

 

 

$

115,801

 

Service revenues

 

 

13,411

 

 

 

2,363

 

 

 

15,774

 

 

 

13,891

 

 

 

1,109

 

 

 

15,000

 

Rental revenues

 

 

5,228

 

 

 

4,172

 

 

 

9,400

 

 

 

2,389

 

 

 

5,896

 

 

 

8,285

 

Total revenues

 

$

98,307

 

 

$

53,510

 

 

$

151,817

 

 

$

92,330

 

 

$

46,756

 

 

$

139,086

 

 

 

Nine Months Ended September 30, 2024

 

 

Nine Months Ended September 30, 2023

 

(in thousands)

 

NAM

 

 

INTL &
Offshore

 

 

Total

 

 

NAM

 

 

INTL &
Offshore

 

 

Total

 

Product revenues

 

$

211,405

 

 

$

131,917

 

 

$

343,322

 

 

$

228,901

 

 

$

124,263

 

 

$

353,164

 

Service revenues

 

 

37,698

 

 

 

5,976

 

 

 

43,674

 

 

 

43,177

 

 

 

3,426

 

 

 

46,603

 

Rental revenues

 

 

9,182

 

 

 

13,938

 

 

 

23,120

 

 

 

8,689

 

 

 

13,893

 

 

 

22,582

 

Total revenues

 

$

258,285

 

 

$

151,831

 

 

$

410,116

 

 

$

280,767

 

 

$

141,582

 

 

$

422,349

 

 

Trade Receivables are stated at the historical carrying amount net of allowances for credit losses. We evaluate our global trade receivable through a continuous process of assessing our portfolio on an individual customer and overall basis. Based on our review, we establish or adjust allowances for specific customers. Past due balances are written-off against allowance for credit losses when the accounts are deemed to be no longer collectible.

The changes in allowance for credit losses during the nine months ended September 30, 2024 and 2023 were as follows:

 

 

 

September 30,

 

(in thousands)

 

2024

 

 

2023

 

Balance at January 1

 

$

5,015

 

 

$

3,136

 

Allowance pertaining to the receivables acquired as part of the Merger

 

 

72,685

 

 

 

-

 

Provision for credit losses

 

 

1,323

 

 

 

3,797

 

Write-offs charged against allowance

 

 

(2,434

)

 

 

(1,576

)

Balance at September 30

 

$

76,589

 

 

$

5,357

 

Contract Balances

Based upon the terms of the specific contract, billings may be in excess of the revenue recognized, in which case the amounts are included in contract liabilities as a liability on the Condensed Consolidated Balance Sheets. Likewise, revenue recognized may exceed customer billings, in which case the amounts are reported in contract assets.

Contract assets are recognized for revenue related to products accounted for using the over time method of accounting and are earned on completion of the performance obligation, for which consideration to be received is conditional on something other than the passage of time. The amounts recognized as contract assets are reclassified to trade receivable upon billing, as at that point, consideration is conditional only upon the passage of time. Contract liabilities represent the Company’s obligations to transfer goods or services to customers for which the Company has received consideration, in full or part, from the customer.

Balances related to contracts with customers consisted of the following:

Contract Assets (amounts shown in thousands)

Contract assets at December 31, 2023

 

$

-

 

Additions

 

 

8,896

 

Transfers to Trade receivables, net

 

 

(749

)

Contract assets at September 30, 2024

 

$

8,147

 

Contract liabilities (amounts shown in thousands)

Contract liabilities at December 31, 2023

 

$

-

 

Additions

 

 

14,979

 

Revenue recognized

 

 

(889

)

Contract liabilities at September 30, 2024

 

$

14,090

 

Obligations for returns and refunds were considered immaterial as of September 30, 2024.

Remaining Performance Obligations

The aggregate amount of the transaction price allocated to remaining performance obligations from our over time product lines was $2.4 million as of September 30, 2024. The Company expects to recognize revenue on all of the remaining performance obligations over the next twelve months.

The Company applies the practical expedient available under Accounting Standards Codification 606, which permits us not to disclose information about remaining performance obligations that have original expected durations of one year or less.