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REVENUES
 9 Months Ended
Sep. 30, 2025
Revenue from Contract with Customer [Abstract]  
REVENUES

3. REVENUES

 

Nature of the Company’s products and services

 

The Company’s principal products and services include distributed energy resources, power generation equipment and mobile electric vehicle charging solutions.

 

Products

 

The Company’s Electrical Infrastructure business (included in discontinued operations; see Note 8 – Discontinued Operations for details) provided electric power systems and equipment and distributed energy resources that helped customers effectively and efficiently protect, control, transfer, monitor and manage their electric energy needs.

 

The Company’s Critical Power business provides customers with power generation equipment and the Company’s suite of mobile e-Boost electric vehicle charging solutions.

 

Services

 

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

 

The timing of revenue recognition, customer billings and cash collections results in accounts receivable, contract assets and deferred revenue at the end of each reporting period. Contract assets include unbilled amounts typically resulting from revenue recognized exceeding amounts billed to customers for contracts utilizing an input method based on the proportion of labor hours incurred as compared to the total estimated labor hours for the fixed-fee contract performance obligations. The Company bills customers as work progresses in accordance with agreed-upon contractual terms, either at periodic intervals, upon achievement of contractual milestones or upon deliveries.

 

Revenue Recognition

 

During the three months ended September 30, 2025, and 2024, the Company recognized $45 and $0 of equipment revenue over time, respectively, from its Critical Power segment. Additionally, the Company recognized $3,780 and $3,494 of revenue at a point in time from the sale of its products, which is typically recognized upon delivery, from its Critical Power segment during the three months ended September 30, 2025, and 2024, respectively. There were no bill and hold arrangements during the three months ended September 30, 2025, and 2024.

 

During the nine months ended September 30, 2025, and 2024, the Company recognized $221 and $45 of equipment revenue over time, respectively, from its Critical Power segment. Additionally, the Company recognized $11,590 and $5,395 of revenue at a point in time from the sale of its products, which is typically recognized upon delivery, from its Critical Power segment during the nine months ended September 30, 2025, and 2024, respectively. Included within point in time revenue during the nine months ended September 30, 2025, was $2,337 of revenue recognized pursuant to bill and hold arrangements. There were no bill and hold arrangements during the nine months ended September 30, 2024.

 

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 $2,857 and $2,401 of service revenue during the three months ended September 30, 2025, and 2024, respectively. The Company recognized $7,590 and $6,456 of service revenue during the nine months ended September 30, 2025, and 2024, respectively.

 

Under its continuing operations, the Company recognizes revenue as services are provided. Amounts billed and due from customers, as well as the value of unbilled account receivables, are generally classified within current assets in the unaudited condensed consolidated balance sheets.

 

The change in deferred revenue as of September 30, 2025, was driven primarily by ordinary course contract activity. As of January 1, 2024, the Company had a deferred revenue balance of $307.

 

For the three months ended September 30, 2025, and 2024, the Company recognized revenue of $17 and $70, respectively, related to amounts that were included in deferred revenue as of December 31, 2024, and 2023, respectively, resulting primarily from the progress made on the various active contracts during the respective reporting periods.

 

 

For the nine months ended September 30, 2025, and 2024, the Company recognized revenue of $478 and $170, respectively, related to amounts that were included in deferred revenue as of December 31, 2024, and 2023, respectively, resulting primarily from the progress made on the various active contracts during the respective reporting periods.

 

As of September 30, 2025, the Company had $871 related to contract liabilities where performance obligations have not yet been satisfied, which has been included within deferred revenue in the unaudited condensed consolidated balance sheet.

 

Concentration of Risk

 

For the three months ended September 30, 2025, the Company derived 19% and 17% of its revenue from two customers. For the three months ended September 30, 2024, the Company derived 45% and 10% of its revenue from two customers.

 

For the nine months ended September 30, 2025, the Company derived 30% of its revenue from one customer. For the nine months ended September 30, 2024, the Company derived 22%, 10% and 10% of its revenue from three customers.

 

As of September 30, 2025, three customer’s outstanding receivable balance equaled 53% of the total outstanding receivable balance. As of December 31, 2024, one customer’s outstanding receivable balance equaled 72% of the total outstanding receivable balance.

 

As of September 30, 2025, one customer represented 100% of the Company’s lease receivable balance.

 

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, 2025, were $85 and $609, respectively. Returns and warranties during the three and nine months ended September 30, 2024, were insignificant.

 

Disaggregated Revenue

 

The following table presents the Company’s revenues disaggregated by revenue discipline:

 

   2025   2024   2025   2024 
   For the Three Months Ended   For the Nine Months Ended 
   September 30,   September 30, 
   2025   2024   2025   2024 
Revenues - ASC 606                    
Products  $3,825   $3,494   $11,811   $5,440 
Services   2,857    2,401    7,590    6,456 
Total revenues - ASC 606  $6,682   $5,895    19,401    11,896 
Revenues - ASC 842                    
Sales-type lease revenue   (7)   -    1,403    - 
Fixed lease revenue   213    521    1,194    1,230 
Total revenues - ASC 842   206    521    2,597    1,230 
Total revenue  $6,888   $6,416   $21,998   $13,126 

 

 

Lease Revenues

 

There were no leasing revenues arising from variable lease payments during the three and nine-month periods ended September 30, 2025, and 2024.

 

The following table presents future operating lease payments to be received as of September 30, 2025:

 

For the Years Ending December 31,  Total 
2025  $127 
2026   213 
2027   200 
2028   200 
2029   142 
Total  $882 

 

Leases receivable relating to sales-type lease arrangements are presented on the Company’s unaudited condensed consolidated balance sheets as follows:

 

   2025   2024 
   September 30,   December 30, 
   2025   2024 
Reported as:          
Accounts receivable  $130   $- 
Lease receivable and other assets   1,276    - 
Net investment in sales-type leases  $1,406   $-