Sales, Contract Assets and Contract Liabilities

9 Months Ended

Sep. 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 three months 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 $900,000 and includes certain performance requirements 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 three months ended March 31, 2017, revenue totaling $360,000 was recognized with the completion of the performance obligations. The remaining units with a contract value totaling $540,000 are in progress. 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 September 30, 2017, the Company had contract assets of $126,000 and contract liabilities of $0.