Annual report pursuant to Section 13 and 15(d)

Revenue Recognition

v3.24.1.1.u2
Revenue Recognition
 12 Months Ended
Mar. 31, 2022
Revenue Recognition  
Revenue Recognition

8. Revenue Recognition

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

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​

​

​

​

​

​

​

​

Year Ended March 31,

​

​

2022

​

2021

​

    

(Restated)

    

(Restated)

Microturbine Products

​

$

31,367

​

$

34,367

Accessories

​

​

1,353

​

​

2,284

Total Product and Accessories

​

​

32,720

​

​

36,651

Parts and Service(1)

​

 

31,244

​

 

30,956

Total Revenue

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$

63,964

​

$

67,607
(1) $0.3 million and $0.1 million of parts and service revenue reported were non-ASC-606 revenue related to the labor reimbursement of FPP contracts as of March 31, 2022 and 2021, respectively.

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

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​

​

​

​

​

​

​

Year Ended March 31,

​

​

2022

​

2021

​

    

(Restated)

    

(Restated)

United States

​

$

30,269

​

$

33,332

Mexico

​

 

3,706

​

 

3,836

All other North America

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600

​

 

304

Total North America

​

 

34,575

​

 

37,472

Russia

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3,381

​

 

3,107

All other Europe

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​

10,872

​

​

13,026

Total Europe

​

​

14,253

​

​

16,133

Asia

​

 

5,978

​

 

6,342

Australia

​

 

4,195

​

 

3,297

All other

​

 

4,963

​

 

4,363

Total Revenue

​

$

63,964

​

$

67,607

​

Contract Balances

The Company’s deferred revenues consist of advance payments for microturbine products, parts, accessories, and parts ordered under an FPP plan, but not yet delivered (contract liabilities), as well as advanced payments on service obligations and extended warranties. The current portion of deferred revenue is included in Deferred revenue and the non-current portion of deferred revenue is included in Deferred revenue, non-current in the consolidated balance sheets.

As of March 31, 2022, the balance of deferred revenue was approximately $15.8 million compared to $12.6 million as of March 31, 2021. This overall increase in the balance of deferred revenue of $3.2 million during Fiscal 2022 was comprised of increases in deferred revenue attributable to deposits of $2.2 million and Distributor Support System (“DSS program”) of $1.3 million, offset by a decrease in FPP contracts of $0.3 million. Changes in deferred revenue are as follows (in thousands):

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​

​

​

​

​

​

​

​

March 31, 2022

​

March 31, 2021

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​

​

(Restated)

​

(Restated)

​

Opening balance, beginning of the period

​

$

12,587

​

$

15,376

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Closing balance, end of the period

​

$

15,816

​

$

12,587

​

Revenue recognized in the period from:

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​

​

​

​

​

​

Amounts included in contract liability at the beginning of the period

​

$

11,303

​

$

11,998

​

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, 2022, approximately $4.5 million of revenue is expected to be recognized from remaining performance obligations for FPP service contracts. The Company expects to recognize revenue on approximately $3.5 million of these remaining performance obligations over the next 12 months and the balance of $1.0 million will be recognized thereafter.