Annual report pursuant to Section 13 and 15(d)

Revenue Recognition

v3.24.3
Revenue Recognition
 12 Months Ended
Mar. 31, 2024
Revenue Recognition  
Revenue Recognition

7. Revenue Recognition

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

​

​

​

​

​

​

​

​

​

Year Ended March 31,

​

    

2024

    

2023

Microturbine Products

​

$

47,787

​

$

33,196

Accessories

​

​

1,320

​

​

1,837

Total Product and Accessories

​

​

49,107

​

​

35,033

​

​

​

​

​

​

​

Parts and Service

​

​

30,681

​

​

30,684

Rentals

​

 

11,431

​

 

8,165

Total Revenue

​

$

91,219

​

$

73,882

​

The following table presents disaggregated revenue by geography based on the primary operating location of the Company’s customers (in thousands):

​

​

​

​

​

​

​

​

​

​

Year Ended March 31,

 

​

    

2024

    

2023

 

United States

​

$

54,574

​

$

45,071

​

Mexico

​

 

5,070

​

 

2,990

​

All other North America

​

 

1,278

​

 

1,412

​

Total North America

​

 

60,922

​

 

49,473

​

Russia

​

 

—

​

 

3,045

​

All other Europe

​

​

18,333

​

​

11,553

​

Total Europe

​

​

18,333

​

​

14,598

​

Asia

​

 

3,137

​

 

3,251

​

Australia

​

 

4,746

​

 

2,840

​

All other

​

 

4,081

​

 

3,720

​

Total Revenue

​

$

91,219

​

$

73,882

​

​

 

Substantially all of the Company’s operating assets are in the United States.

Contract Balances

The Company’s deferred revenues consist of advance payments for microturbine products, parts, accessories and parts ordered under FPP contracts, but not yet delivered (contract liabilities), as well as advance 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.

Changes in deferred revenue consisted of the following (in thousands):

​

​

​

​

​

​

​

​

​

​

March 31,

​

March 31,

​

​

2024

​

2023

Opening balance, beginning of the year

​

$

24,189

​

$

15,816

Closing balance, end of the year

​

$

11,858

​

$

24,189

Revenue recognized during the year from:

​

​

​

​

​

​

Amounts included in deferred revenue at the beginning of the year

​

$

16,527

​

$

13,026

​

Deferred revenue attributed to FPP contracts represents the unearned portion of the Company’s contracts. FPP contracts are generally paid quarterly in advance with revenue recognized on a straight-line basis over the contract period. As of March 31, 2024, approximately $4.7 million of revenue is expected to be recognized from remaining performance obligations for FPP 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 $0.7 million will be recognized thereafter.

The Distributor Support System (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 geographic and market verticals. This program is funded by the distributors and was developed to provide improved worldwide distributor training, sales efficiency, website development, company branding and 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. Refer to Note 14 – Commitments and Contingencies — Related Party Transactions, in the Notes to Consolidated Financial Statements for information regarding Reorganized PrivateCo’s distributor services business transition connected to the Company’s emergence from the Chapter 11 Cases.