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Revenue
6 Months Ended
Jun. 30, 2019
Revenue From Contract With Customer [Abstract]  
Revenue

8. REVENUE

The Company’s revenues consist primarily of 1) recurring and supplemental fees earned under the AMA and BMA within the Asset Management segment, 2) commercial and residential property management within the Asset Management segment, 3) environmental engineering and consulting services within the Real Estate Services segment, and 4) revenue generated through other real estate management and consulting services. All of the Company’s revenue streams are U.S. based and substantially all are accounted for as short-term contracts. As such, the performance obligations required to complete contracts have an expected duration of less than one year. As a result, the Company does not disclose the value of unsatisfied performance obligations for contracts in accordance with the optional exemptions related to the disclosure of transaction price allocation under ASC 606. Additionally, incremental costs of obtaining a contract are recognized as an expense when incurred because the amortization period of the asset would have been recognized in one year or less.

The following table presents the Company’s sales from contracts with customers disaggregated by categories which best represents how the nature, amount and timing and uncertainty of sales are affected by economic factors.

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Revenue by customer

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Related party

 

$

4,167

 

 

$

2,931

 

 

$

7,971

 

 

$

5,722

 

Commercial

 

 

755

 

 

 

523

 

 

 

1,540

 

 

 

970

 

Total Revenue by customer

 

$

4,922

 

 

$

3,454

 

 

$

9,511

 

 

$

6,692

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue by contract type

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed-price

 

$

608

 

 

$

104

 

 

$

1,041

 

 

$

104

 

Cost-plus

 

 

3,626

 

 

 

2,856

 

 

 

7,111

 

 

 

5,647

 

Time and Material

 

 

688

 

 

 

494

 

 

 

1,359

 

 

 

941

 

Total Revenue by contract type

 

$

4,922

 

 

$

3,454

 

 

$

9,511

 

 

$

6,692

 

 

Under the recently executed 2019 AMA and most of the Company’s real estate services contracts, performance obligations are satisfied over time. For performance obligations satisfied over time, the objective is to measure progress in a manner which depicts the performance of transferring control to the customer. As such, the company recognizes revenue over time using the “right-to-invoice” practical expedient cost-to-cost revenue recognition model, as this depicts when control of the promised goods and/or services are transferred to the customer. Sales are recognized as the ratio of actual costs of work performed to the estimated costs at completion of the performance obligation (cost-to-cost). As such, these revenues are disaggregated in ‘Related party’ and ‘Commercial’ customers, and ‘Cost-plus’ and ‘Fixed-price’ in the tables above.

Other revenue earned from management, consulting and administrative support services provided, which may or may not be covered by a formal contract, are generally time and material based. Revenue from these contracts is recognized as the services are provided. As such, these revenues are disaggregated in ‘Commercial’ and ‘Time and Material’ in the tables above.