Revenue

9 Months Ended

Sep. 30, 2022

Revenue from Contract with Customer [Abstract]

Revenue

9. Revenue

Operating Revenues

We provide businesses with services to reuse, recycle, and dispose of a wide variety of waste streams and recyclables generated by their operations. Service revenues are primarily generated from fees charged for our collection, transfer, disposal and recycling services and from sales of commodities by our recycling operations. In addition, we have product sales and other revenue primarily from sales of products such as antifreeze and windshield washer fluid, equipment, as well as minor ancillary services.

Revenue Recognition

We recognize revenue as services are performed or products are delivered. For example, we recognize revenue as waste and recyclable material are collected or when products are delivered. We recognize revenue net of any contracted pricing discounts or rebate arrangements.

We generally recognize revenue for the gross amount of consideration received as we are generally the primary obligor (or principal) in our contracts with customers as we hold complete responsibility to the customer for contract fulfillment. Depending on the key terms of the arrangement, which may include situations in which we are not primarily obligated, we do not have credit risk, or we determine amounts earned using fixed percentage or fixed fee schedules, we may record the revenue net of certain cost amounts. We had certain management fee contracts accounted for under the net basis method with net revenue of $92,475 and $0 for the three months ended September 30, 2022 and 2021, respectively. We had net revenue from management fee contracts accounted for under the net basis method of $392,451 and $0 for the nine months ended September 30, 2022 and 2021, respectively. We record amounts collected from customers for sales tax on a net basis.

Disaggregation of Revenue

The following table presents our revenue disaggregated by source. Two customers accounted for 21.0% of revenue for the three months ended September 30, 2022 and one customer accounted for 14.5% of revenue for the nine months ended September 30, 2022. Two customers accounted for 39.4% and 43.8% of revenue for the three and nine months ended September 30, 2021, respectively. We operate primarily in the United States, with minor services in Canada.

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
	(Unaudited)				(Unaudited)
Revenue Type:
Services	$	70,895,554	$	35,267,085	$	213,934,853	$	102,567,569
Product sales and other		2,462,739		2,099,655		7,850,396		6,759,245
Total revenue	$	73,358,293	$	37,366,740	$	221,785,249	$	109,326,814

Contract Balances

Our incremental direct costs of obtaining a customer contract are generally deferred and amortized to selling, general, and administrative expense or as a reduction to revenue (depending on the nature of the cost) over the estimated life of the customer contract. We classify our contract acquisition costs as current or noncurrent based on the timing of when we expect to recognize the amortization and are included in other assets.

As of September 30, 2022 and December 31, 2021, we had $567,500 and $775,000 of deferred contract costs, respectively. During the three and nine months ended September 30, 2022, we amortized $102,500 and $307,500, respectively, of deferred contract costs to

selling, general, and administrative expense. During the three and nine months ended September 30, 2021, we amortized $50,000 and $150,000, respectively, of deferred contract costs to selling, general, and administrative expense.

We bill certain customers in advance, and, accordingly, we defer recognition of related revenues as a contract liability until the services are provided and control is transferred to the customer. As of September 30, 2022 and December 31, 2021, we had $2,614,003 and $3,722,017, respectively, of deferred revenue which was classified in “Other current liabilities.”