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REVENUE DISAGGREGATION | 3 Months Ended
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Mar. 31, 2021
Revenue from Contract with Customer [Abstract] |
REVENUE DISAGGREGATION | 4. Revenue Disaggregation The following tables summarize disaggregated customer contract revenues and the source of the revenue for the three months ended March 31, 2021 and 2020. Revenues from lending and trading activities included in consolidated revenues were primarily interest, dividend and other investment income, which are not considered to be revenues from contracts with customers under GAAP. The Company’s disaggregated revenues consist of the following for the three months ended March 31, 2021 and 2020:
|  | Three Months ended March 31, 2021 |
|  | GWW |  |  | Coolisys |  |  | Ault Alliance |  |  | Total |
Primary Geographical Markets |  |  |  |  |  |  |  |  |  |  |  |
North America |  | $ | 1,889,262 |  |  | $ | 1,207,400 |  |  | $ | 302,039 |  |  | $ | 3,398,701 |
Europe |  |  | 1,910,002 |  |  |  | 109,141 |  |  |  | — |  |  |  | 2,019,143 |
Middle East |  |  | 2,389,063 |  |  |  | — |  |  |  | — |  |  |  | 2,389,063 |
Other |  |  | 161,692 |  |  |  | 65,808 |  |  |  | — |  |  |  | 227,500 |
Revenue from contracts with customers |  |  | 6,350,019 |  |  |  | 1,382,349 |  |  |  | 302,039 |  |  |  | 8,034,407 |
Revenue, lending and trading activities |  |  |  |  |  |  |  |  |  |  | 5,210,222 |  |  |  | 5,210,222 |
Total revenue |  | $ | 6,350,019 |  |  | $ | 1,382,349 |  |  | $ | 5,512,261 |  |  | $ | 13,244,629 |
Major Goods |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
RF/Microwave Filters |  | $ | 1,214,901 |  |  | $ | — |  |  | $ | — |  |  | $ | 1,214,901 |
Detector logarithmic video amplifiers |  |  | 71,070 |  |  |  | — |  |  |  | — |  |  |  | 71,070 |
Power Supply Units |  |  | 238,423 |  |  |  | 1,382,349 |  |  |  | — |  |  |  | 1,620,772 |
Power Supply Systems |  |  | 2,233,287 |  |  |  | — |  |  |  | — |  |  |  | 2,233,287 |
Healthcare diagnostic systems |  |  | 184,725 |  |  |  | — |  |  |  | — |  |  |  | 184,725 |
Defense systems |  |  | 2,407,613 |  |  |  | — |  |  |  | — |  |  |  | 2,407,613 |
Digital currency mining |  |  |  |  |  |  |  |  |  |  | 129,896 |  |  |  | 129,896 |
Other |  |  | — |  |  |  | — |  |  |  | 172,143 |  |  |  | 172,143 |
Revenue from contracts with customers |  |  | 6,350,019 |  |  |  | 1,382,349 |  |  |  | 302,039 |  |  |  | 8,034,407 |
Revenue, lending and trading activities |  |  |  |  |  |  |  |  |  |  | 5,210,222 |  |  |  | 5,210,222 |
Total revenue |  | $ | 6,350,019 |  |  | $ | 1,382,349 |  |  | $ | 5,512,261 |  |  | $ | 13,244,629 |
Timing of Revenue Recognition |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Goods transferred at a point in time |  | $ | 3,757,681 |  |  | $ | 1,382,349 |  |  | $ | 302,039 |  |  | $ | 5,442,069 |
Services transferred over time |  |  | 2,592,338 |  |  |  | — |  |  |  | — |  |  |  | 2,592,338 |
Revenue from contracts with customers |  | $ | 6,350,019 |  |  | $ | 1,382,349 |  |  | $ | 302,039 |  |  | $ | 8,034,407 |
|  | Three Month ended March 31, 2020 |
|  | GWW |  |  | Coolisys |  |  | Ault Alliance |  |  | Total |
Primary Geographical Markets |  |  |  |  |  |  |  |  |  |  |  |
North America |  | $ | 1,672,726 |  |  | $ | 866,928 |  |  | $ | - |  |  | $ | 2,539,654 |
Europe |  |  | 310,569 |  |  |  | 227,328 |  |  |  | — |  |  |  | 537,897 |
Middle East |  |  | 2,306,288 |  |  |  | — |  |  |  | — |  |  |  | 2,306,288 |
Other |  |  | 97,864 |  |  |  | 87,579 |  |  |  | — |  |  |  | 185,443 |
Revenue from contracts with customers |  |  | 4,387,447 |  |  |  | 1,181,835 |  |  |  | - |  |  |  | 5,569,282 |
Revenue, lending and trading activities |  |  |  |  |  |  |  |  |  |  | 36,152 |  |  |  | 36,152 |
Total revenue |  | $ | 4,387,447 |  |  | $ | 1,181,835 |  |  | $ | 36,152 |  |  | $ | 5,605,434 |
Major Goods |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
RF/Microwave filters |  | $ | 1,501,380 |  |  | $ | — |  |  | $ | — |  |  | $ | 1,501,380 |
Detector logarithmic video amplifiers |  |  | 288,846 |  |  |  | — |  |  |  | — |  |  |  | 288,846 |
Power supply units |  |  | — |  |  |  | 1,181,835 |  |  |  | — |  |  |  | 1,181,835 |
Power supply systems |  |  | 290,933 |  |  |  | — |  |  |  | — |  |  |  | 290,933 |
Healthcare diagnostic systems |  |  | 214,303 |  |  |  | — |  |  |  | — |  |  |  | 214,303 |
Defense systems |  |  | 2,091,985 |  |  |  | — |  |  |  | — |  |  |  | 2,091,985 |
Revenue from contracts with customers |  |  | 4,387,447 |  |  |  | 1,181,835 |  |  |  | - |  |  |  | 5,569,282 |
Revenue, lending and trading activities |  |  |  |  |  |  |  |  |  |  | 36,152 |  |  |  | 36,152 |
Total revenue |  | $ | 4,387,447 |  |  | $ | 1,181,835 |  |  | $ | 36,152 |  |  | $ | 5,605,434 |
Timing of Revenue Recognition |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Goods transferred at a point in time |  | $ | 2,081,159 |  |  | $ | 1,181,835 |  |  | $ | - |  |  | $ | 3,262,994 |
Services transferred over time |  |  | 2,306,288 |  |  |  | — |  |  |  | — |  |  |  | 2,306,288 |
Revenue from contracts with customers |  | $ | 4,387,447 |  |  | $ | 1,181,835 |  |  | $ | - |  |  | $ | 5,569,282 |
Sales of Products The Company generates revenues from the sale of its products through a direct and indirect sales force. The Company’s performance obligations to deliver products are satisfied at the point in time when products are received by the customer, which is when the customer obtains control over the goods. The Company provides standard assurance warranties, which are not separately priced, that the products function as intended. The Company primarily receives fixed consideration for sales of product. Some of the Company’s contracts with distributors include stock rotation rights after six months for slow moving inventory, which represents variable consideration. The Company uses an expected value method to estimate variable consideration and constrains revenue for estimated stock rotations until it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur. To date, returns have been insignificant. The Company’s customers generally pay within 30 days from the receipt of an invoice. Because the Company’s product sales agreements have an expected duration of one year or less, the Company has elected to adopt the practical expedient in ASC 606-10-50-14(a) of not disclosing information about its remaining performance obligations. Manufacturing Services The Company provides manufacturing services in exchange primarily for fixed fees; however, the initial two MLSE units are subject to variable pricing under the $50 million purchase order from MTIX. Under the terms of the MLSE purchase order, the Company is entitled to cost plus $100,000 for the manufacture of the first two MLSE units. The Company has determined that the costs of manufacturing the MLSE units will decline over time because of a learning curve which will result in a greater amount of revenue being recognized for these initial two MLSE units. For manufacturing services, which include revenues generated by Enertec and in certain instances revenues generated by Gresham Power, the Company’s performance obligation for manufacturing services is satisfied over time as the Company creates or enhances an asset based on criteria that are unique to the customer and that the customer controls as the asset is created or enhanced. Generally, the Company recognizes revenue based upon proportional performance over time using a cost to cost method which measures progress based on the costs incurred to total expected costs in satisfying its performance obligation. This method provides a depiction of the progress in providing the manufacturing service because there is a direct relationship between the costs incurred by the Company and the transfer of the manufacturing service to the customer. Manufacturing services that are recognized based upon the proportional performance method are included in the above table as services transferred over time and to the extent the customer has not been invoiced for these revenues, as accrued revenue in the accompanying consolidated balance sheets. Revisions to the Company’s estimates may result in increases or decreases to revenues and income and are reflected in the consolidated financial statements in the periods in which they are first identified. The Company has elected the practical expedient to not adjust the promised amount of consideration for the effects of a significant financing component to the extent that the period between when the Company transfers its promised good or service to the customer and when the customer pays in one year or less. The aggregate amount of the transaction price allocated to the performance obligation that is partially unsatisfied as of March 31, 2021, for the MLSE units was $48.0 million, representing 24 MLSE units. Based on our expectations regarding funding of the production process and our experience building the first machines, the Company expects to recognize the remaining revenue related to the partially unsatisfied performance obligation over an estimated three year period. The Company will be paid in installments for this performance obligation over the estimated period that the remaining revenue is recognized. Lending Activities and Trading Activities Ault Alliance, through DP Lending, generates revenue from lending activities primarily through interest, origination fees and late/other fees. Interest income on these products is calculated based on the contractual interest rate and recorded as interest income as earned. The origination fees or original issue discounts are recognized over the life of the loan using the effective interest method. Financial instruments utilized in trading activities are carried at fair value. Fair value is generally based on quoted market prices for the same or similar assets and liabilities. If these market prices are not available, fair values are estimated based on dealer quotes, pricing models, discounted cash flow methodologies, or similar techniques where the determination of fair value may require significant management judgment or estimation. Realized gains and losses are recorded on a trade-date basis. Realized and unrealized gains and losses are recognized in revenue from lending activities. Blockchain Mining The Company has entered into digital asset mining pools by executing contracts with the mining pool operators to provide computing power to the mining pool. The contracts are terminable at any time by either party and the Company’s enforceable right to compensation only begins when the Company provides computing power to the mining pool operator. In exchange for providing computing power, the Company is entitled to a fractional share of the fixed digital currency award the mining pool operator receives (less digital asset transaction fees to the mining pool operator which are recorded as a component of cost of revenues), for successfully adding a block to the blockchain. The Company’s factional share is based on the proportion of computing power the Company contributed to the mining pool operator to the total computing power contributed by all mining pool participants in solving the current algorithm. Providing computing power in digital asset transaction verification services is an output of the Company’s ordinary activities. The provision of providing such computing power is the only performance obligation in the Company’s contracts with mining pool operators. The transaction consideration the Company receives, if any, is noncash consideration, which the Company measures at fair value on the date received, which is not materially different than the fair value at contract inception or the time the Company has earned the award from the pools. The consideration is all variable. Because it is not probable that a significant reversal of cumulative revenue will not occur, the consideration is constrained until the mining pool operator successfully places a block (by being the first to solve an algorithm) and the Company receives confirmation of the consideration it will receive, at which time revenue is recognized. There is no significant financing component in these transactions. Fair value of the digital currency award received is determined using the market rate of the related digital currency at the time of receipt. There is currently no specific definitive guidance under GAAP or alternative accounting framework for the accounting for digital currencies recognized as revenue or held, and management has exercised significant judgment in determining the appropriate accounting treatment. In the event authoritative guidance is enacted by the FASB, the Company may be required to change its policies, which could have an effect on the Company’s consolidated financial position and results from operations. Expenses associated with running the cryptocurrency mining business, such as equipment deprecation and electricity cost are recorded as a component of cost of revenues.

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- Definition Tabular disclosure of disaggregation of revenue into categories depicting how nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factor. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130545-203045 + Details
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