| Revenue from Contract with Customer [Text Block] | 3. REVENUE FROM CONTRACTS WITH CUSTOMERS On January 1, 2018, 606 606" not December 31, 2017. January 1, 2018 606, not 2 606. 606 January 1, 2018 Balance at December 31, 2017 Adjustments Due to ASC 606 Balance at January 1, 2018 (in thousands) Assets Inventories $ 13,892 $ (1,064 ) $ 12,828 Contract assets 2,299 (516 ) 1,783 Total current assets 41,276 (1,580 ) 39,696 Total assets 87,909 (1,580 ) 86,329 Liabilities Contract liabilities 8,829 (4,168 ) 4,661 Refund liabilities 695 870 1,565 Total current liabilities 18,914 (3,298 ) 15,616 Deferred tax liabilities 2,414 (173 ) 2,241 Total liabilities 30,423 (3,471 ) 26,952 Stockholders' Equity Accumulated deficit (108,559 ) 1,891 (106,668 ) Total stockholders' equity 57,486 1,891 59,377 Total liabilities and stockholders' equity $ 87,909 $ (1,580 ) $ 86,329 The impact of adoption on our condensed consolidated balance sheet and condensed consolidated statement of operations as of and for the period ended March 31, 2018 For the period ended March 31, 2018 (in thousands) As Reported Balances Without Adoption of ASC 606 Effect of Change Higher / (Lower) Statement of Operations Total revenues $ 21,966 $ 21,704 $ 262 Cost of revenues 15,389 15,746 (357 ) Gross profit 6,577 5,958 619 Loss from operations (3,779 ) (4,398 ) 619 Loss before taxes (3,563 ) (4,182 ) 619 Income tax benefit (302 ) (391 ) 89 Net loss $ (3,261 ) $ (3,791 ) 530 Basic and diluted loss per common share $ (0.11 ) $ (0.13 ) $ 0.02 As of March 31, 2018 As Reported Balances Without Adoption of ASC 606 Effect of Change Higher / (Lower) (in thousands) Assets Inventories $ 11,906 $ 12,548 $ (642 ) Contract assets 1,196 1,570 (374 ) Prepaid expenses and other 1,691 1,780 (89 ) Total current assets 36,423 37,528 (1,105 ) Total assets $ 83,925 $ 85,030 $ (1,105 ) Liabilities Contract liabilities $ 5,168 $ 9,621 $ (4,453 ) Refund liabilities 1,951 819 1,132 Total current liabilities 16,154 19,475 (3,321 ) Deferred tax liabilities 1,999 2,178 (179 ) Total liabilities 27,150 30,650 (3,500 ) Stockholders' Equity Accumulated deficit (109,929 ) (112,350 ) 2,421 Accumulated other comprehensive loss (3,071 ) (3,045 ) (26 ) Total stockholders' equity 56,775 54,380 2,395 Total liabilities and stockholders' equity $ 83,925 $ 85,030 $ (1,105 ) The adoption of ASC 606 no Power and Electromechanical segment The Power and Electromechanical segment generates its revenue from two power solutions components Energy segment The Energy segment subsidiaries, collectively referred to as Orbital, generate their revenue from a portfolio of products, services and resources that offer a diverse range of personalized gas engineering solutions to the gas utilities, power generation, emissions, manufacturing and automotive industries. Orbital accounts for a majority of its contract revenue proportionately over time. For our performance obligations satisfied over time, we recognize revenue by measuring the progress toward complete satisfaction of that performance obligation. The selection of the method to measure progress towards completion can be either an input method or an output method and requires judgment based on the nature of the goods or services to be provided. For our construction contracts, revenue is generally recognized over time as our performance creates or enhances an asset that the customer controls. Our fixed price construction projects generally use a cost-to-cost input method to measure our progress towards complete satisfaction of the performance obligation as we believe it best depicts the transfer of control to the customer. Under the cost-to-cost measure of progress, the extent of progress towards completion is measured based on the ratio of costs incurred to date to the total estimated costs at completion of the performance obligation. The timing of revenue recognition for Energy products also depends on the payment terms of the contract, as our performance does not not For our services contracts, revenue is also generally recognized over time as the customer simultaneously receives and consumes the benefits of our performance as we perform the service. For our fixed price service contracts with specified service periods, revenue is generally recognized on a straight-line basis over such service period when our inputs are expended evenly, and the customer receives and consumes the benefits of our performance throughout the contract term. For certain of our revenue streams, such as call-out repair and service work, and outage services, that are performed under time and materials contracts, our progress towards complete satisfaction of such performance obligations is measured using an output method as the customer receives and consumes the benefits of our performance completed to date. Due to uncertainties inherent in the estimation process, it is possible that estimates of costs to complete a performance obligation will be revised in the near-term. For those performance obligations for which revenue is recognized using a cost-to-cost input method, changes in total estimated costs, and related progress towards complete satisfaction of the performance obligation, are recognized on a cumulative catch-up basis in the period in which the revisions to the estimates are made. When the current estimate of total costs for a performance obligation indicate a loss, a provision for the entire estimated loss on the unsatisfied performance obligation is made in the period in which the loss becomes evident. Product-type contracts (for example, sale of GasPt units) for which revenue does not Accounts Receivable, Contract Assets and Contract Liabilities Accounts receivable are recognized in the period when our right to consideration is unconditional. Accounts receivable are recognized net of an allowance for doubtful accounts. A considerable amount of judgment is required in assessing the likelihood of realization of receivables. The timing of revenue recognition may not Contract liabilities from our construction contracts occur when amounts invoiced to our customers exceed revenues recognized under the cost-to-cost measure of progress. Contract liabilities additionally include advanced payments from our customers on certain contracts. Contract liabilities decrease as we recognize revenue from the satisfaction of the related performance obligation and are recorded as either current or long-term, depending upon when we expect to recognize such revenue. In the first three 2018, $0.9 December 31, 2017. Refund liabilities and corresponding inventory adjustment Refund liabilities primarily represent estimated future new product introduction returns and estimated future scrap returns. Future new product returns are based on a percent of current inventory of newly introduced products held by our distributor customers. The liability for estimated returns of newly introduced product is reversed to revenue as the inventory is sold. Future scrap returns are based on a percentage of total revenues. In addition to the refund liabilities recorded for future returns, the Company also records an adjustment to inventory and corresponding adjustment to cost of revenue for the Company's right to recover products from customers upon settling the refund liability. Performance Obligations Remaining Performance Obligations Remaining performance obligations, represents the transaction price of firm orders for which work has not March 31, 2018, 12 Any quarterly adjustments to net revenues, cost of revenues, and the related impact to operating income are recognized as necessary in the period they become known. These adjustments may may may not one one Performance Obligations satisfied over time To determine the proper revenue recognition method for contracts for our Energy segment, we evaluate whether a single contract should be accounted for as more than one For most of our contracts, the customer contracts with us to provide a significant service of integrating a complex set of tasks and components into a single project or capability (even if that single project results in the delivery of multiple units). Hence, the entire contract is accounted for as one may one one Performance Obligations satisfied at a point in time. Revenue from goods and services transferred to customers at a single point in time accounted for 82% three March 31, 2018. Variable Consideration The nature of our contracts gives rise to several types of variable consideration, including new product returns and scrap returns allowances primarily in our Power and Electromechanical segment. In rare instances in our Energy segment, we include in our contract estimates, additional revenue for submitted contract modifications or claims against the customer when we believe we have an enforceable right to the modification or claim, the amount can be estimated reliably and its realization is probable. In evaluating these criteria, we consider the contractual/legal basis for the claim, the cause of any additional costs incurred, the reasonableness of those costs and the objective evidence available to support the claim. We include new product introduction and scrap return estimates in our calculation of net revenue when there is a basis to reasonably estimate the amount of the returns. These estimates are based on historical return experience, anticipated returns and our best judgment at the time. Because of our certainty in estimating these amounts, they are included in our calculation of net revenue recorded for our contracts and the associated remaining performance obligations. The following table presents our revenues disaggregated by revenue source for the three March 31, 2018: (in thousands) Power and Electromechanical Energy Total Distributor sales $ 9,617 $ — $ 9,617 Direct Sales 7,403 4,946 12,349 Total revenues $ 17,020 $ 4,946 $ 21,966 The following table presents our revenues disaggregated by timing of revenue recognition for the three March 31, 2018: (in thousands) Power and Electromechanical Energy Total Revenues recognized at point in time $ 17,020 $ 1,047 $ 18,067 Revenues recognized over time — 3,899 3,899 Total revenues $ 17,020 $ 4,946 $ 21,966 The following table presents our revenues disaggregated by region for the three March 31, 2018: (in thousands) Power and Electromechanical Energy Total North America $ 13,032 $ 1,365 $ 14,397 Europe 1,094 3,524 4,618 Asia 2,819 29 2,848 Other 75 28 103 Total revenues $ 17,020 $ 4,946 $ 21,966 |
