Annual report pursuant to Section 13 and 15(d)

Revenue Recognition

v3.21.1
Revenue Recognition
 12 Months Ended
Mar. 31, 2021
Revenue Recognition  
Revenue Recognition

7. Revenue Recognition

The following table presents disaggregated revenue by business group (in thousands):

 

 

 

 

 

 

 

 

 

Year Ended March 31,

 

    

2021

    

2020

Microturbine Products

 

$

34,121

 

$

33,790

Accessories

 

 

2,396

 

 

1,548

Total Product and Accessories

 

 

36,517

 

 

35,338

Parts and Service

 

 

31,119

 

 

33,588

Total Revenue

 

$

67,636

 

$

68,926

Following is the geographic revenue information based on the primary operating location of the Company’s customers (in thousands):

 

 

 

 

 

 

 

 

 

Year Ended March 31,

 

    

2021

    

2020

United States

 

$

32,502

 

$

31,082

Mexico

 

 

3,931

 

 

2,361

All other North America

 

 

321

 

 

1,145

Total North America

 

 

36,754

 

 

34,588

Russia

 

 

3,577

 

 

3,653

All other Europe

 

 

13,659

 

 

12,858

Total Europe

 

 

17,236

 

 

16,511

Asia

 

 

6,087

 

 

4,074

Australia

 

 

3,165

 

 

4,559

All other

 

 

4,394

 

 

9,194

Total Revenue

 

$

67,636

 

$

68,926

 

Contract Balances

The Company’s contract liabilities consist of advance payments for systems as well as deferred revenue on service obligations and extended warranties. The current portion of deferred revenue is included in current liabilities under deferred revenue and the non-current portion of deferred revenue is included in other non-current liabilities in the consolidated balance sheets.

As of March 31, 2021, the balance of deferred revenue was approximately $7.1 million compared to $8.8 million as of March 31, 2020. This overall decrease in the balance of deferred revenue of $1.7 million during Fiscal 2021 was comprised of decreases in deferred revenue attributable to deposits of $0.7 million, FPP contracts of $0.6 million and Distributor Support System (“DSS program”) of $0.4 million. Changes in deferred revenue are as follows (in thousands):

 

 

 

 

 

 

 

 

 

 

March 31,

    

March 31,

 

 

 

2021

 

2020

 

FPP Balance, beginning of the period

 

$

5,342

 

$

4,882

 

FPP Billings

 

 

16,700

 

 

17,004

 

FPP Revenue recognized

 

 

(17,277)

 

 

(16,544)

 

Balance attributed to FPP contracts

 

 

4,765

 

 

5,342

 

DSS Program

 

 

1,417

 

 

1,831

 

Deposits

 

 

957

 

 

1,669

 

Deferred revenue balance, end of the period

 

$

7,139

 

$

8,842

 

 

Deferred revenue attributed to FPP contracts represents the unearned portion of the Company’s agreements. FPP agreements are generally paid quarterly in advance with revenue recognized on a straight line basis over the contract period. The DSS program provides additional support for distributor business development activities, customer lead generation, brand awareness and tailored marketing services for each of the Company’s major geography and market vertical. This program is funded by the Company’s distributors and was developed to provide improved worldwide distributor training, sales efficiency, website development, company branding and provide funding for increased strategic marketing activities. DSS program revenue is generally paid quarterly with revenue recognized on a straight line basis over a calendar year period. Deposits are primarily non-refundable cash payments from distributors for future orders.

As of March 31, 2021, approximately $4.8 million of revenue is expected to be recognized from remaining performance obligations for FPP service contracts. The Company expects to recognize revenue on approximately $4.0 million of these remaining performance obligations over the next 12 months and the balance of $0.8 million will be recognized thereafter.