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Revenue Recognition | 12 Months Ended
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Sep. 30, 2019
Revenue From Contract With Customer [Abstract] |
Revenue Recognition | 2. Revenue Recognition On October 1, 2018, the Company adopted ASC Topic 606, Revenue from Contracts with Customers. This new standard applies to contracts for the sale of products and services, and does not apply to contracts for the rental or lease of products. The Company adopted the new standard using the modified retrospective method applied to those contracts that were not completed as of September 30, 2018. Results for reporting periods beginning after September 30, 2018 are presented under the new standard, while prior period amounts are not restated. Under the new standard, the Company recognizes revenue from product sales and services when performance of contractual obligations are satisfied, generally when control of the promised goods or services is transferred to its customers, in an amount that reflects the consideration it expects to be entitled to in exchange for those goods or services. The Company primarily derives product revenue from the sale of its manufactured products. Revenue from these product sales is recognized when obligations under the terms of a contract are satisfied, control is transferred and collectability of the sales price is reasonably assured. Transfer of control generally occurs with shipment or delivery, depending on the terms of the underlying contract. Most of the Company’s products do not require installation assistance or sophisticated instruction. The Company’s products are generally sold without any customer acceptance provisions, and the Company’s standard terms of sale do not allow customers to return products for credit. We offer a standard product warranty, which obligates us, in certain circumstance, to repair or replace our products having manufacturing defects. We maintain a reserve for future warranty costs based on historical experience or, in the absence of historical experience, management estimates. Revenue from engineering services is recognized as services are rendered over the duration of a project, or as billed on a per hour basis. Field service revenue is recognized when services are rendered and is generally priced on a per day rate. The Company also generates revenue from short-term rentals under operating leases of its manufactured products. Rental revenue is recognized as earned over the rental period. Rentals of the Company’s equipment generally range from daily rentals to minimum rental periods of up to six months or longer. The Company has determined that the new standard does not apply to rental contracts, which are within the scope of other revenue recognition accounting standards. The cumulative effect of the changes made to the Company’s consolidated balance sheet as of October 1, 2018 resulting from the adoption of the new standard was not material and did not impact beginning retained earnings. The impact on the timing of sales and services for the fiscal year ended September 30, 2019 resulting from the application of the new standard was not material. As permissible under the new standard, sales taxes and transaction-based taxes are excluded from revenue. The Company does not disclose the value of unsatisfied performance obligations for contracts with an original expected duration of one year or less. Additionally, the Company expenses costs incurred to obtain contracts when incurred because the amortization period would be one year or less. These costs are recorded in selling, general and administrative expenses. At September 30, 2019 and September 30, 2018 the Company had deferred contract liabilities of zero and $0.2 million, respectively, included as a component of deferred revenue. The Company had deferred contract costs of zero and $27,000 at September 30, 2019 and September 30, 2018, respectively, included as a component of prepaid expenses and other current assets. During the fiscal year ended September 30, 2019, the Company recognized revenue of $0.2 million from deferred contract liabilities and cost of revenue of $27,000 from deferred contract costs. For each of the Company’s operating segments, the following table presents revenue only from the sale of products and the performance of services under contracts with customers. The table excludes all revenue earned from rental contracts (in thousands):
|  | YEAR ENDED SEPTEMBER 30, |
|  | 2019 |  |  | 2018 |
Oil and Gas Markets Product and Services Revenue: |  |  |  |  |  |  |  |
Traditional exploration |  | $ | 8,712 |  |  | $ | 11,795 |
Wireless exploration |  |  | 4,362 |  |  |  | 6,851 |
Reservoir |  |  | 2,554 |  |  |  | 4,533 |
Total revenue |  |  | 15,628 |  |  |  | 23,179 |
Adjacent Markets Product and Services Revenue: |  |  |  |  |  |  |  |
Industrial |  |  | 18,324 |  |  |  | 18,352 |
Imaging |  |  | 11,736 |  |  |  | 11,489 |
Total revenue |  |  | 30,060 |  |  |  | 29,841 |
Emerging Markets Product and Services Revenue: |  |  |  |  |  |  |  |
Revenue |  |  | 159 |  |  |  | 286 |
Total |  | $ | 45,847 |  |  | $ | 53,306 |
See Note 21 for more information on the Company’s operating segments. For each of the geographic areas where the Company operates, the following table presents revenue (in thousands) from the sale of products and services under contracts with customers. The table excludes all revenue earned from rental contracts:
|  | YEAR ENDED SEPTEMBER 30, |
|  | 2019 |  |  | 2018 |
Asia |  | $ | 6,025 |  |  | $ | 2,143 |
Canada |  |  | 2,558 |  |  |  | 13,044 |
Europe |  |  | 6,569 |  |  |  | 4,652 |
United States |  |  | 28,763 |  |  |  | 31,296 |
Other |  |  | 1,932 |  |  |  | 2,171 |
|  | $ | 45,847 |  |  | $ | 53,306 |

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- References No definition available. + Details
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- 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 -Publisher FASB -Name Accounting Standards Codification -Topic 606 -URI http://asc.fasb.org/topic&trid=49130388 + Details
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