Note 12 — Revenue

 

Revenue Recognition

 

Revenue is recognized in accordance with ASC Topic 606 upon transfer of control of promised products or services to customers in an amount that reflects the consideration we expect to receive in exchange for those products or services. We enter into contracts that typically are for products only although contracts could include various combinations of products and services, which are generally distinct and accounted for as separate performance obligations. Revenue is recognized net of taxes collected from customers, which are subsequently remitted to governmental authorities. The Company generally sells its products FOB shipping and recognizes revenue when products are shipped. Revenue from services, which consist of commissioning services, if any, is recognized as services are performed.

 

The Company had revenue from three customers which accounted for 31%, 19% and 15% of net revenue for the three months ended March 31, 2018 and revenue from three customers which accounted for 25%, 19% and 16% of net revenue for the three months ended March 31, 2017.

  

Deferred Revenues

 

We record deferred revenues when cash payments are received in advance of our performance. Based on our review of customer credit, we may require full or partial payment before the products or services are delivered to the customer.

 

Activity in the deferred revenue account was as follows:

 

Balance at December 31, 2017		$	-
Deferral of revenue			17,350
Recognition of revenue			(17,350)
Balance at March 31, 2018		$	-