13. REVENUES

9 Months Ended

Sep. 30, 2019

Revenue from Contract with Customer [Abstract]

REVENUES

13. REVENUES

For each of the identified periods, revenues can be categorized into the following:

	For the nine months ended
	September 30,
	2019		2018
Product Sales	$	4,607,237	$	4,642,428
Maintenance Fees		8,432		5,682
Professional Services		–		10,575
Total Revenues	$	4,615,669	$	4,658,685

At September 30, 2019 and December 31, 2018, deferred revenue was $86,677 and $835,785 respectively. The September 30, 2019 balance includes an initial deposit to plan and manufacture two Solar Tree® units, in addition to deposits for multi-year maintenance plans for previously sold products. As of September 30, 2019, deferred revenue associated with product deposits are $26,304 and the delivery of such products are expected within the next six months, while deferred maintenance fees amounted to $60,373 and pertain to services to be provided through the third quarter of 2024.

At December 31, 2018, the Company accrued expected contract losses of $71,744 on an order for a customer that was expected to ship in 2019 (see Note 4). As the units were delivered, the loss accrual was proportionally reduced. In the three and nine months ended September 30, 2019, $30,611 and $71,744 was released from the accrual to reduce cost of revenues.