Sales, Prepaid Manufacturing Costs, Cost of Goods Sold, and Contract Liabilities

9 Months Ended

Dec. 31, 2024

Sales, Prepaid Manufacturing Costs, Cost of Goods Sold, and Contract Liabilities [Abstract]

Sales, Prepaid Manufacturing Costs, Cost of Goods Sold, and Contract Liabilities

8.	Sales, Prepaid Manufacturing Costs, Cost of Goods Sold, and Contract Liabilities

The Company derives revenue from the sale of products and delivery of services. Revenue disaggregated by type for the three and nine months ended December 31, 2024 and December 31, 2023 is as follows:

	Three Months Ended December 2024, $000		Three Months Ended December 2023, $000		Nine Months Ended December 2024, $000		Nine Months Ended December 2023, $000
Products		115		8,353		840		8,353
Services		1,406		1,904		4,343		4,258
Total		1,521		10,257		5,183		12,611

Revenue from services includes services provided under BESS construction management agreements (“CMA”) and management service agreements (“MSA”), specific services provided to marine scrubber systems as well as design and engineering services for Concentrated Solar Power (CSP). Contracts for specific services provided to marine scrubber systems represent maintenance services which are recognized at a point in time when services are completed. Contracts for CSP include design and engineering services provided to clients which are recognized over time as the service is completed. Contracts for services provided under BESS construction management agreements is recognized over time as the service is provided.

Service revenue by type for the three and nine months ended December 31, 2024 and December 31, 2023 is as follows:

	Three Months Ended December 2024, $000		Three Months Ended December 2023, $000		Nine Months Ended December 2024, $000		Nine Months Ended December 2023, $000
Specific services provided to marine scrubber systems		704		1,196		2,082		3,176
BESS CMA and MSA		693		524		2,129		524
Design and engineering services for CSP		9		185		132		558
		1,406		1,905		4,343		4,258

The Company has analyzed its sales contracts under ASC 606 and has identified that the percentage of completion of the contract often is not directly correlated with contractual payment terms with customers. As a result of the timing differences between customer payments and percentage of completion of the contract, contractual assets and contractual liabilities have been recognized.

As of December 31, 2024, contract liabilities included $1,907,000 related to BESS construction management agreement (March 31, 2024 - $3,826,000).

Changes in the Company’s accrued revenue, prepaid manufacturing costs, and contract liabilities for the period are noted as below:

	Accrued Revenue $000			Prepaid Manufacturing Costs $000			Sales (Cost of Goods Sold) $000			Contract Liabilities $000

Balance, March 31, 2023		505			464						(8,751	)

Customer receipts and receivables		–			–			–			(4,768	)
Scrubber sales recognized in revenue		–			–			8,353			8,353
Payments and accruals under contracts		(67	)		936			–			–
Cost of goods sold recognized in earnings		–			(864	)		(864	)		–
Balance, December 31, 2023		438			536						(5,166	)

Balance, March 31, 2024		588			673						(4,700	)

Customer receipts and receivables		–			–			–			(2,449	)
Scrubber and FOWE sales recognized in revenue		–			–			840			840
BESS CMA and MSA recognized in revenue		–			–			2,129			2,129
Payments and accruals under contracts		(470	)		328			–			–
Scrubber and FOWE cost of goods sold recognized in earnings		–			(576	)		(1,141	)		–
BESS CMA and MSA cost of sales recognized in earnings		–			–			(1,800	)		–
Balance, December 31, 2024		118			425						(4,180	)

Cost of goods sold for the nine months ended December 31, 2024 and December 31, 2023 is comprised as follows:

	Three Months Ended December 2024, $000			Three Months Ended December 2023, $000		Nine Months Ended December 2024, $000		Nine Months Ended December 2023, $000
BESS CMA and MSA – cost of sales		721			465		1,800		903
Specific services provided to marine scrubber systems		484			905		1,576		2,423
Scrubber costs recognized		47			161		391		70
Amortization of intangibles		41			236		126		726
FOWE cost of goods sold		(13	)		–		243		–
Salaries and Wages		154			143		436		406
Design and engineering services for CSP		1			51		330		221
Commission type costs		14			10		44		40
Total		1,449			1,971		4,946		4,789