18.	Contracts with Customers

We routinely enter into agreements with customers that include general commercial terms and conditions, notification requirements for price increases, shipping terms, and in most cases, prices for the products that we offer. However, these agreements do

not

obligate us to provide goods to the customer and there is

consideration promised to us at the onset of these arrangements. For customers without separate agreements, we have a standard list price established for all products and our invoices contain standard terms and conditions that are applicable to those customers where a separate agreement is

not

controlling. Our performance obligations are established when a customer submits a purchase order or e-mail notification (in writing, electronically or verbally) for goods, and we accept the order. We identify performance obligations as the sale of our products and services as requested from our customers. We generally recognize revenue upon the satisfaction of these criteria when control of the product has been transferred to the customer at which time we have an unconditional right to receive payment. Our prices are fixed and are

not

affected by contingent events that could impact the transaction price. We do

not

offer price concessions and do

not

accept payment that is less than the price stated when we accept the purchase order, except in rare credit related circumstances. We do

not

have any material performance obligations where we are acting as an agent for another entity.

Revenues for all products are typically recognized at the time the product is shipped, at which time the title passes to the customer, and there are

further performance obligations.

Sources of Revenue

We have identified the following revenues disaggregated by revenue source:

Domestic – direct sales of products and services.

International – direct sales of products and services.

During the fiscal years

2019,

2018

and

2017,

the Company had revenue from both sources. International revenues in all periods was immaterial. For the fiscal year

2019,

prostate brachytherapy comprised

89%

of our revenue while other revenue comprised

11%

compared to

86%

and

14%,

respectively, in the fiscal year

2018,

and

88%

and

12%,

respectively, in the fiscal year

2017.

Contract Balances

We incur obligations on general customer purchase orders and e-mails that have been accepted but unfulfilled. Due to the short duration of time between order acceptance and delivery of the related product, we have determined that the balance related to these obligations is generally immaterial at any point in time. We monitor the value of orders accepted but unfulfilled at the close of each reporting period to determine if disclosure is appropriate.

Warranty

Our general product warranties do

not

extend beyond an assurance that the product delivered will be consistent with stated specifications and do

not

include separate performance obligations.

Returns

Generally, we allow returns if

not

implanted and we are notified within a few weeks after satisfying our performance obligations of a return. Returns after shipment

may

result in a

50%

restocking fee.

Significant Judgments in the Application of the Guidance in ASC

606

There are

significant judgments associated with the satisfaction of our performance obligations. We generally satisfy performance obligations upon shipment of the product to the customer. This is consistent with the time in which the customer obtains control of the products. Therefore, the value of unsatisfied performance obligations at the end of any reporting period is generally immaterial. We use historical information along with an analysis of the expected value to properly calculate and to consider the need to constrain estimates of variable consideration. Such amounts are included as a reduction to revenue from the sale of products in the periods in which the related revenue is recognized and adjusted in future periods as necessary.

Commissions and Contract Costs

We expense commissions on orders to our sales team upon satisfaction of our performance obligations. We generally do

not

incur incremental charges associated with securing agreements with customers which would require capitalization and recovery over the life of the agreement.

Practical Expedients

Our payment terms for sales direct to customers and distributors are substantially less than the

one

year collection period that falls within the practical expedient in determination of whether a significant financing component exists.

Shipping and Handling Charges

Fees charged to customers for shipping and handling of products are included as revenue and the costs for shipping and handling of products are included as a component of cost of sales.

Taxes Collected from Customers

As our products are used in another service and are exempt, to this point we have

not

collected taxes. If we were to collect taxes they would be on the value of transaction revenue and would be excluded from revenues and cost of sales and would be accrued in current liabilities until remitted to governmental authorities.

Concentration of Customers

One group of customers, facilities or physician practices has revenues that aggregate to greater than

10%

of total Company sales. This group of facilities individually do

not

aggregate to more than

10%

of total Company sales. They are serviced by the same physician group,

one

of whom is our Medical Director:

	Year ended June 30,
Facility	201 9 % of total revenue			201 8 % of total revenue			201 7 % of total revenue
El Camino, Los Gatos, & other facilities		22.1	%		24.2	%		22.9	%