v3.26.1
Revenue, Unearned Revenue and Unbilled Accounts Receivable
12 Months Ended
Dec. 31, 2025
Revenue, Unearned Revenue and Unbilled Accounts Receivable  
Revenue, Unearned Revenue and Unbilled Accounts Receivable

Note 6 – Revenue, Unearned Revenue and Unbilled Accounts Receivable

 

Revenue

 

The following is a summary of our revenues by type for the years ended December 31, 2025 and 2024:

 

 

 

Year Ended

 

Name

 

December 31, 2025

 

 

December 31, 2024

 

Equipment revenue

 

$(1,653,007)

 

 

-769%

 

$227,956

 

 

 

51%

Service revenue

 

 

1,868,044

 

 

 

869%

 

 

217,489

 

 

 

49%

Total

 

$215,037

 

 

 

100%

 

$445,445

 

 

 

100%

 

Unearned Revenue

 

The following is a summary of our unearned revenue activity for the years ended December 31, 2025 and 2024:

 

 

 

December 31,

 

 

December 31,

 

 

 

2025

 

 

2024

 

Unearned revenue at beginning of year

 

$227,683

 

 

$130,000

 

Billings deferred

 

 

222,239

 

 

 

197,683

 

Refundable deposit returned

 

 

-

 

 

 

(100,000)

Recognition of prior unearned revenue

 

 

(107,017)

 

 

-

 

Unearned revenue at end of year

 

$342,905

 

 

$227,683

 

 

At December 31, 2025, we anticipate recognizing approximately $313,000 of unearned revenue in the following fiscal year which has been presented as a current liability at December 31, 2025. The remaining balance of $30,000 has been classified as a long-term liability as the timing of revenue recognition is unknown. 

 

Unbilled Accounts Receivable

 

The following is a summary of our unbilled accounts receivable activity during the years ended December 31, 2025 and 2024:

 

 

 

December 31,

 

 

December 31,

 

 

 

2025

 

 

2024

 

Unbilled accounts receivable at beginning of year

 

$1,653,007

 

 

$1,494,553

 

Services performed but unbilled

 

 

254,874

 

 

 

217,666

 

Services billed

 

 

-

 

 

 

(59,212)

Reassessment of variable consideration

 

 

(1,907,881)

 

 

-

 

Unbilled accounts receivable at end of year

 

$-

 

 

$1,653,007

 

  

As discussed in Note 2, we anticipated delivering the AirSCWO equipment to OC San during the year ended December 31, 2025. Due to the delays we have encountered in delivering the equipment, we reassessed the variable consideration at December 31, 2025. The changes in facts and circumstances have resulted in us fully constraining the variable consideration at December 31, 2025. This resulted in the reduction of unbilled accounts receivable and reduction in equipment revenue in the amount of approximately $1.9 million.