Sales, Billings, and Costs on Uncompleted Contracts

3 Months Ended

Mar. 31, 2018

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 March 31, 2018, the Company completed 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 was valued at approximately $900,000 and included certain performance obligations related to emission levels. As such, each flare retrofit was considered a separate transaction where revenues were recognized upon delivery of the unit and satisfaction of the performance obligation. In 2017, revenue totaling $540,000 was recognized with the completion of the contractual obligations. The remaining units with a contract value totaling $360,000 were completed and revenue was recognized during the three months ended March 31, 2018. The Company also recognized revenue of $128,000 upon completion of a once through steam generator (OTSG) project and revenue of $42,000 from a small project in the quarter ended March 31, 2018. At March 31, 2018, costs to date of $57,000 exceeded billings to date of $18,000 and are reflected on the balance sheet as contract assets. To date, all of the company’s sales have been Duplex products sold in the United States.