Sales, Billings, and Costs on Uncompleted Contracts

3 Months Ended

Mar. 31, 2017

Costs in Excess of Billings on Uncompleted Contracts or Programs [Abstract]

Revenue and Billings On Uncompleted Contracts In Excess of Costs ,Description [Text Block]

Note 5 – Sales, Billings, and Costs on Uncompleted Contracts

In the quarter ended September 30, 2016, the Company entered into a multi-flare contract with a third party contractor to supply its Duplex technology to a major California oil producer to retrofit its enclosed wellhead ground flares. This contract is valued at approximately $900,000 and includes certain performance obligations related to emission levels. As such, each flare retrofit is considered a separate transaction where revenues are recognized upon delivery of the unit and satisfaction of the performance obligation. In the quarter ended March 31, 2017, revenue totaling $360,000 was recognized with the completion of the contractual obligations. The remaining units with a contract value totaling $540,000 are expected to be completed over the next 3 to 6 months depending on the oil producer customer's schedule. At March 31, 2017, billings to date of $236,000 exceeded costs to date of $193,000 and are reflected on the balance sheet as billings on uncompleted contracts in excess of costs.