3. REVENUES

Nature of the Company’s products and services

The Company’s principal products and services include distributed energy resources, power generation equipment and mobile electric vehicle charging solutions.

Products

The Company’s Critical Power business provides customers with power generation equipment and the Company’s suite of mobile e-Boost electric vehicle charging solutions.

Services

Power generation systems represent considerable investments that require proper maintenance and service in order to operate reliably during a time of emergency. The Company’s power maintenance programs provide preventative maintenance, repair and support service for the Company’s customers’ power generation systems.

The timing of revenue recognition, customer billings and cash collections results in accounts receivable and deferred revenue at the end of each reporting period. Contract assets include unbilled amounts typically resulting from revenue recognized exceeding amounts billed to customers for contracts utilizing an input method based on the proportion of labor hours incurred as compared to the total estimated labor hours for the fixed-fee contract performance obligations. The Company bills customers as work progresses in accordance with agreed-upon contractual terms, either at periodic intervals, upon achievement of contractual milestones or upon deliveries.

Revenue Recognition

During the three months ended March 31, 2026, and 2025, the Company recognized $79 and $150 of equipment revenue over time, respectively. Additionally, the Company recognized $1,514 and $3,623 of revenue at a point in time from the sale of its products, which is typically recognized upon delivery, during the three months ended March 31, 2026, and 2025, respectively. Included within point in time revenue during the three months ended March 31, 2025, the Company recognized $2,337 of revenue pursuant to bill and hold arrangements.

Service revenues include maintenance contracts that are recognized over time based on the contract term and repair services which are recognized as services are delivered. The Company recognized $2,417 and $2,444 of service revenue during the three months ended March 31, 2026, and 2025, respectively. The Company recognizes revenue as services are provided. Amounts billed and due from customers, as well as the value of unbilled account receivables, are generally classified within current assets in the unaudited condensed consolidated balance sheets.

The change in deferred revenue as of March 31, 2026, was driven primarily by ordinary course contract activity. As of January 1, 2026, the Company had a deferred revenue balance of $791.

For the three months ended March 31, 2026, and 2025, the Company recognized revenue of $360 and $230 respectively, related to amounts that were included in deferred revenue as of December 31, 2025, and 2024, resulting primarily from the progress made on the various active contracts during the respective reporting periods.

As of March 31, 2026, the Company had $1,041 related to contract liabilities where performance obligations have not yet been satisfied, which has been included within deferred revenue in the unaudited condensed consolidated balance sheet.

Concentration of Risk

During the three months ended March 31, 2026, the Company derived 14% and 11% of its revenue from two customers. During the three months ended March 31, 2025, the Company derived 39% and 11% of its revenue from two customers.

As of March 31, 2026, one customer’s outstanding receivable balance equaled 17% of the total outstanding receivable balance. As of December 31, 2025, one customer’s outstanding receivable balance equaled 25% of the total outstanding receivable balance.

As of March 31, 2026 and December 31, 2025, one customer represented 100% of the Company’s lease receivable balance.

Return of a product requires that the buyer obtain permission in writing from the Company. When the buyer requests authorization to return material for reasons of their own, the buyer will be charged for placing the returned goods in saleable condition, restocking charges and for any outgoing and incoming transportation paid by the Company. The Company warrants title to the products, and also warrants the products on date of shipment to the buyer, to be of the kind and quality described in the contract, merchantable, and free of defects in workmanship and material. Returns and warranties during the three months ended March 31, 2026, were insignificant, and returns and warranties during the three months ended March 31, 2025, were $370.

Disaggregated Revenue

The following table presents the Company’s revenues disaggregated by revenue discipline:

 SCHEDULE OF REVENUES DISAGGREGATED BY REVENUE DISCIPLINE

Lease Revenues

The Company’s sales-type lease portfolio as of March 31, 2026 consisted of nine mobile EV charging and power generation units leased to a single customer under two separate agreements, each with original terms of ten years. The leases do not contain renewal or early termination options.

There were no leasing revenues arising from variable lease payments during the three months ended March 31, 2026, and 2025.

The following table presents future undiscounted operating lease payments to be received as of March 31, 2026:

 SCHEDULE OF FUTURE UNDISCOUNTED OPERATING LEASE PAYMENTS TO BE RECEIVED

As of March 31, 2026, and December 31, 2025, the lease receivable was $2,800 and $2,843, respectively. There were no unguaranteed residual assets or deferred selling profit included in the net investment as of March 31, 2026, and December 31, 2025, respectively. Lessees do not provide residual value guarantees on leased equipment. The Company manages residual value risk by monitoring technological developments and anticipated market demand for its mobile EV charging and power generation equipment. The Company evaluates its net investment in sales-type leases for credit losses in accordance with ASC 326, considering the creditworthiness of its lessees, historical payment experience, current economic conditions, and reasonable and supportable forecasts.

As of March 31, 2026, and December 31, 2025, one customer represented 100% of the Company’s lease receivable balance. Based on its assessment, including consideration of the lessee’s financial condition and payment history, the Company determined that no allowance for credit losses was necessary as of March 31, 2026, and December 31, 2025.