Sales, Contract Assets and Contract Liabilities

6 Months Ended

Jun. 30, 2017

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

Sales, Contract Assets and Contract Liabilities [Text Block]

Note 5 – Sales, Contract Assets and Contract Liabilities

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 prior quarter, 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 during the course of 2017 depending on the oil producer customer's schedule. The Company also has contracts with two oil producing companies for the installation of its Duplex technology with a total value of approximately $280,000. At June 30, 2017, the Company had contract assets of $84,000 and contract liabilities of $13,000.