On October 1, 2018, the Company adopted ASC Topic 606, Revenue from Contracts with Customers. This new standard applies to contracts for the sale of products and services, and does not apply to contracts for the rental or lease of products. The Company adopted the new standard using the modified retrospective method applied to those contracts that were not completed as of September 30, 2018. Results for reporting periods beginning after September 30, 2018 are presented under the new standard, while prior period amounts are not restated.

Under the new standard, the Company recognizes revenue when performance of contractual obligations are satisfied, generally when control of the promised goods or services is transferred to its customers, in an amount that reflects the consideration it expects to be entitled to in exchange for those goods or services.

The Company primarily derives product revenue from the sale of its manufactured products and from the sale of its manufactured rental equipment. Revenue from these product sales, including the sale of used rental equipment, is recognized when all of the following have occurred: (i) title passes to the customer, (ii) the customer assumes the risks and rewards of ownership, (iii) the product sales price has been determined, (iv) collectability of the sales price is reasonably assured, and (v) product delivery occurs as directed by the customer. The Company’s products are generally sold without any customer acceptance provisions, and the Company’s standard terms of sale do not allow customers to return products for credit.

Revenue from engineering services is recognized as services are rendered over the duration of a project, or as billed on a per hour basis. Field service revenue is recognized when services are rendered and is generally priced on a per day rate.

The Company also generates revenue from short-term rentals under operating leases of its manufactured products. Rental revenue is recognized as earned over the rental period. Rentals of the Company’s equipment generally range from daily rentals to rental periods of up to six months or longer. The Company has determined that the new standard does not apply to rental contracts, which are within the scope of other revenue recognition accounting standards.

The cumulative effect of the changes made to the Company’s consolidated balance sheet as of October 1, 2018 resulting from the adoption of the new standard was not material and did not impact opening retained earnings. The impact on the timing of sales and services for the three months ended December 31, 2018 resulting from the application of the new standard was not material.

As permissible under the new standard, sales and transaction-based taxes are excluded from revenue. Also, the Company does not disclose the value of unsatisfied performance obligations for contracts with an original expected duration of one year or less. Additionally, the Company expenses costs incurred to obtain contracts when incurred because the amortization period would have been one year or less. These costs are recorded in selling, general and administrative expenses.

As of December 31, 2018 and September 30, 2018 the Company had deferred contract liabilities of $0.1 million and $0.2 million included in deferred revenue and deferred contract assets of $36,000 and $27,000 included in prepaid expenses and other current assets on its consolidated balance sheets. During the three months ended December 31, 2018, the Company recognized revenue of $0.1 million included in its deferred contract liability balance and $8,000 included in its prepaid expenses and other current asset balance at the beginning of the period.

For each of the Company’s operating segments, the following table presents revenue from the sale of products and services under contracts with customers. The table excludes all revenue earned from rental contracts (in thousands):

	Three Months Ended
	December 31, 2018		December 31, 2017
Oil and Gas Markets
Traditional exploration product revenue	$	2,726	$	3,599
Wireless exploration product revenue		144		2,623
Reservoir product revenue		888		618
Total revenue		3,758		6,840

Adjacent Markets
Industrial product revenue		3,562		3,676
Imaging product revenue		3,051		2,758
Total revenue		6,613		6,434

Emerging Markets
Revenue		88		—

Total	$	10,459	$	13,274

For each of the geographic areas where the Company operates, the following table presents revenue from the sale of products and services under contracts with customers. The table excludes all revenue earned from rental contracts (in thousands):

	Three Months Ended
	December 31, 2018		December 31, 2017
Asia	$	1,558	$	1,006
Canada		288		365
Europe		915		3,419
United States		6,610		8,023
Other		1,088		461
Total	$	10,459	$	13,274

Revenue is attributable to countries based on the ultimate destination of the product sold, if known. If the ultimate destination is not known, revenue is attributable to countries based on the geographic location of the initial shipment.