Revenue | 8. Revenue Operating Revenues We provide businesses with services to reuse, recycle, and dispose of a wide variety of waste streams and recyclables generated by their operations. In addition, we have product sales and other revenue primarily from sales of products, such as antifreeze and windshield washer fluid, as well as minor ancillary services. Revenue Recognition We recognize revenue as services are performed or products are delivered. For example, we recognize revenue as waste and recyclable material are collected or when products are delivered. We recognize revenue net of any contracted pricing discounts or rebate arrangements. We generally recognize revenue for the gross amount of consideration received as we are generally the primary obligor (or principal) in our contracts with customers as we hold complete responsibility to the customer for contract fulfillment. We record amounts collected from customers for sales tax on a net basis. Disaggregation of Revenue The following table presents our revenue disaggregated by source. Sales and usage-based taxes are excluded from revenue. Three customers accounted for 54.1% of revenue for the three months ended June 30, 2019, and three customers accounted for 53.0% of revenue for the three months ended June 30, 2018. Three customers accounted for 57.0% of revenue for the six months ended June 30, 2019, and three customers accounted for 50.8% of revenue for the six months ended June 30, 2018. We operate primarily in the United States, with minor services in Canada. Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 (Unaudited) (Unaudited) Revenue Type: Services $ 22,767,059 $ 25,324,837 $ 46,821,578 $ 47,330,409 Product sales and other 2,678,314 2,603,789 5,272,836 5,294,140 Total revenue $ 25,445,373 $ 27,928,626 $ 52,094,414 $ 52,624,549 Contract Balances Our incremental direct costs of obtaining a customer contract are generally deferred and amortized to selling, general, and administrative expense or as a reduction to revenue (depending on the nature of the cost) over the estimated life of the customer contract. We classify our contract acquisition costs as current or noncurrent based on the timing of when we expect to recognize the amortization and are included in other assets. As of June 30, 2019 and December 31, 2018, we had $121,250 and $7,448, respectively, of deferred contract costs. During the three months ended June 30, 2019, we amortized $53,750 and nil of deferred contract costs to selling, general, and administrative expense and as a reduction to revenue, respectively. During the three months ended June 30, 2018, we amortized $70,417 and $18,070 of deferred contract costs to selling, general, and administrative expense and as a reduction to income, respectively. During the six months ended June 30, 2019, we amortized $107,500, and nil of deferred contract costs to selling, general, and administrative expense and as a reduction to income, respectively. During the six months ended June 30, 2018, we amortized $103,750 and $36,139 of deferred contract costs to selling, general, and administrative expense and as a reduction to income, respectively. We bill certain customers in advance, and, accordingly, we defer recognition of related revenues as a contract liability until the services are provided and control is transferred to the customer. As of June 30, 2019 and December 31, 2018, we had $22,416 and $69,473, respectively, of deferred revenue, the majority of which was classified in “Deferred revenue and other current liabilities.” |