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Revenue, Contract Assets and Contract Liabilities
 9 Months Ended
Sep. 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 $1,029 thousand of revenues and $661 thousand of cost of goods sold during the three months ended September 30, 2025. The revenue and cost of goods sold were related to delivering spare parts to multiple customers, delivering a flare order, delivering a mid-stream order, completing a customer witness test, finalizing a Computational Fluid Dynamic (“CFD”) analysis, and providing engineering services. These products and services constitute performance obligations.

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The Company recognized $1,563 thousand of revenues and $944 thousand of cost of goods sold during the nine months ended September 30, 2025. The revenue and cost of goods sold relate to spare parts orders for multiple customers, a performance burner test, flare order, engineering services, sales of boiler burners, and the successful completion of CFD analysis. These products and services constitute performance obligations.

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The Company recognized $1,859 thousand of revenues and $1,308 thousand of cost of goods sold during the three months ended September 30, 2024. The revenue and cost of goods sold predominantly relate to the delivery of multiple process burners to a single customer. The delivery of products constitutes performance obligations.

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The Company recognized $3,006 thousand of revenues and $1,976 thousand of cost of goods sold during the nine months ended September 30, 2024. The revenue and cost of goods sold predominantly relate to the Company’s process burner product line. The Company delivered multiple burners for different customers, successfully completed engineering feasibility studies, including 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 $514 thousand and $194 thousand at September 30, 2025 and December 31, 2024, respectively. The Company had contract liabilities of $1,148 thousand and $73 thousand at September 30, 2025 and December 31, 2024, respectively. Of the $73 thousand contract liabilities balance at December 31, 2024, the Company recognized revenue of $39 thousand and $73 thousand during the three and nine months ended September 30, 2025, respectively.