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Revenue, Contract Assets and Contract Liabilities
 6 Months Ended
Jun. 30, 2025
Revenue, Contract Assets and Contract Liabilities  
Revenue, Contract Assets and Contract Liabilities

Note 5 – Revenue, Contract Assets and Contract Liabilities

The Company’s contracts with customers generally have performance obligations and a schedule of non-refundable cancellation obligations. Performance obligations typically fall into one of three categories, product shipment, burner performance tests and engineering design. Customer payment milestones are unique to individual contracts and may occur prior to completion of performance obligations. Customer payment terms typically range between thirty and sixty days from the date of billing. Our customer contracts typically have a duration of less than twelve months. Delays in contract performance, if any, typically occur as a result of customer onsite project delays outside of our control.

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The Company recognized $133 thousand of revenues and $78 thousand of cost of goods sold during the three months ended June 30, 2025. The revenue and cost of goods sold relate to spare parts orders from multiple customers, and delivery of a boiler burner to a repeat customer. These products and services constitute performance obligations.

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The Company recognized $534 thousand of revenues and $283 thousand of cost of goods sold during the six months ended June 30, 2025. The revenue and cost of goods sold predominantly relate to spare parts orders for multiple customers, sales of boiler burners to a single customer, and the successful completion of an engineering study referred herein as a Computational Fluid Dynamic analysis (“CFD”). These products and services constitute performance obligations.

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The Company recognized $45 thousand of revenues and $3 thousand of cost of goods sold during the three months ended June 30, 2024. The revenue and cost of goods sold relate to the successful completion of engineering studies for a repeat customer. These products and services constitute performance obligations.

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The Company recognized $1,147 thousand of revenues and $668 thousand of cost of goods sold during the six months ended June 30, 2024. The revenue and cost of goods sold relate predominantly to the Company’s process burner product line. The Company delivered multiple burners in connection with a single customer order, successfully completed engineering studies and a CFD analysis, and fulfilled multiple spare parts orders. These products and services constitute performance obligations.

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The Company had contract assets of $268 thousand and $194 thousand at June 30, 2025 and December 31, 2024, respectively. The Company had contract liabilities of $1,675 thousand and $73 thousand at June 30, 2025 and December 31, 2024, respectively. Of the $73 thousand contract liabilities balance at December 31, 2024, the Company recognized revenue of $10 thousand and $33 thousand during the three and six months ended June 30, 2025, respectively.