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REVENUES
 9 Months Ended
Sep. 30, 2023
Revenue from Contract with Customer [Abstract]  
REVENUES

3. REVENUES

 

Nature of our products and services

 

Our principal products and services include electric power systems, distributed energy resources, power generation equipment and mobile EV charging solutions.

 

Products

 

Our T&D Solutions business provides electric power systems and distributed energy resources that help customers effectively and efficiently protect, control, transfer, monitor and manage their electric energy requirements.

 

Our Critical Power business provides customers with our suite of mobile e-Boost electric vehicle charging solutions and power generation equipment.

 

Services

 

Power generation systems represent considerable investments that require proper maintenance and service in order to operate reliably during a time of emergency. Our power maintenance programs provide preventative maintenance, repair and support service for our customers’ power generation systems.

 

Our principal source of revenue is derived from sales of products and fees for services. We measure revenue based upon the consideration specified in the customer arrangement, and revenue is recognized when the performance obligations in the customer arrangement are satisfied. A performance obligation is a promise in a contract to transfer a distinct product or service to the customer. The transaction price of a contract is allocated to each distinct performance obligation and recognized as revenue when or as the customer receives the benefit of the performance obligation. Customers typically receive the benefit of our products when the risk of loss or control for the product transfers to the customer and for services as they are performed. Under ASC 606, revenue is recognized when a customer obtains control of promised products or services in an amount that reflects the consideration we expect to receive in exchange for those products or services.

 

During the three months ended September 30, 2023, the Company recognized $8,919 of revenue over time and incurred costs of $6,408. During the three months ended September 30, 2022, the Company recognized $2,410 of revenue over time and incurred costs of $2,100. Additionally, the Company recognized $1,461 and $1,788 of revenue at a point in time from the sale of our products during the three months ended September 30, 2023 and 2022, respectively.

 

Service revenues include maintenance contracts that are recognized over time based on the contract term and repair services which are recognized as services are delivered. The Company recognized $2,063 and $2,053 of service revenue during the three months ended September 30, 2023 and 2022, respectively.

 

During the nine months ended September 30, 2023, the Company recognized $18,963 of revenue over time and incurred costs of $13,195. During the nine months ended September 30, 2022, the Company recognized $3,309 of revenue over time and incurred costs of $2,881. Additionally, the Company recognized $8,103 and $8,723 of revenue at a point in time from the sale of our products during the nine months ended September 30, 2023 and 2022, respectively.

 

 

Service revenues include maintenance contracts that are recognized over time based on the contract term and repair services which are recognized as services are delivered. The Company recognized $6,014 and $5,444 of service revenue during the nine months ended September 30, 2023 and 2022, respectively.

 

During the three months ended September 30, 2023, the Company recognized approximately $2,569 of revenue that was classified as deferred revenue as of December 31, 2022, as compared to $81 of revenue recognized during the three months ended September 30, 2022 that was classified as deferred revenue at December 31, 2021.

 

During the nine months ended September 30, 2023, the Company recognized approximately $8,336 of revenue that was recognized as deferred revenue at December 31, 2022, as compared to $2,137 of revenue during the nine months ended September 30, 2022 that was recognized as deferred revenue at December 31, 2021.

 

The Company manages its accounts receivable credit risk by performing credit evaluations and monitoring amounts due from the Company’s customers. The Company had certain customers whose revenue individually represented 10% or more of the Company’s total revenue, or whose accounts receivable balances individually represented 10% or more of the Company’s total accounts receivable.

 

As of September 30, 2023, three customers represented approximately 36%, 16% and 14% of the Company’s accounts receivable. At December 31, 2022, three customers represented approximately 57%, 13% and 11% of the Company’s accounts receivable.

 

For the three months ended September 30, 2023, two customers represented approximately 54% and 17% of the Company’s revenue. For the three months ended September 30, 2022, one customer represented approximately 54% of the Company’s revenue.

 

For the nine months ended September 30, 2023, two customers represented approximately 42% and 22% of the Company’s revenue. For the nine months ended September 30, 2022, two customers represented approximately 31% and 12% of the Company’s revenue.

 

Return of a product requires that the buyer obtain permission in writing from the Company. When the buyer requests authorization to return material for reasons of their own, the buyer will be charged for placing the returned goods in saleable condition, restocking charges and for any outgoing and incoming transportation paid by the Company. The Company warrants title to the products, and also warrants the products on date of shipment to the buyer, to be of the kind and quality described in the contract, merchantable, and free of defects in workmanship and material. Returns and warranties during the three and nine months ended September 30, 2023 and 2022 were insignificant.

 

The following table presents our revenues disaggregated by revenue discipline:

 

   2023   2022   2023   2022 
   Three Months Ended   Nine Months Ended 
   September 30,   September 30, 
   2023   2022   2023   2022 
Products  $  10,380   $4,198   $27,066   $12,032 
Services   2,063    2,053    6,014    5,444 
Total revenue  $12,443   $6,251   $33,080   $17,476 

 

See “Note 9 - Business Segment and Geographic Information”.