REVENUE RECOGNITION

Adoption of ASC 606, "Revenue from Contracts with Customers"

On January 1, 2018, we adopted ASC 606 using the modified retrospective method applied to those contracts which were not completed as of January 1, 2018. Results for reporting periods beginning after January 1, 2018 are presented under ASC 606, while prior period amounts are not adjusted and continue to be reported in accordance with our legacy accounting under Accounting Standards Codification Topic 605: Revenue Recognition (ASC 605).

The cumulative effect of the changes made to our January 1, 2018 consolidated balance sheet for the adoption of ASC 606 were as follows:



	Balance at December 31, 2017			Adjustments Upon Adoption of ASC 606		Balance at January 1, 2018
Liabilities
Other accrued liabilities	$	5,098		(205	)	$	4,893
Equity
Accumulated deficit	(102,672		)	205		(102,467		)

The adjustment made to the January 1, 2018 consolidated balance sheet related to deferred revenue under ASC 605 for the license of standalone functional intellectual property to a customer in one of our foreign locations which is recognized at a point in time upon adoption of ASC 606.

Practical Expedients and Exemptions

We generally expense sales commissions on a ratable basis when incurred because the amortization period would have been one year or less. These costs are recorded within selling, general and administrative expenses within the Condensed Consolidated Statements of Operations.

Disaggregated Revenue by Product Technology

The following table presents our revenues disaggregated by product technology:



	Twelve Months Ended December 31,
	2018		2017		2016
Air Pollution Control
Technology solutions	$	35,176	$	24,422	$	30,082
Spare parts	1,083		1,022		1,328
Ancillary revenue	2,158		2,364		2,642
Total Air Pollution Control Technology	38,417		27,808		34,052
FUEL CHEM
FUEL CHEM technology solutions	18,118		17,358		21,109
Total Revenues	$	56,535	$	45,166	$	55,161

(1) As noted above, prior period amounts have not been adjusted under the modified retrospective method.

Disaggregated Revenue by Geography

The following table presents our revenues disaggregated by geography, based on the billing addresses of our customers:



	Twelve Months Ended December 31,
	2018		2017		2016
United States	$	43,887	$	29,510	$	42,545
Foreign Revenues
South America	1,290		2,118		2,934
Europe	6,260		6,206		4,460
Asia	5,098		7,332		5,222
Total Foreign Revenues	12,648		15,656		12,616
Total Revenues	$	56,535	$	45,166	$	55,161

(1) As noted above, prior period amounts have not been adjusted under the modified retrospective method.

Timing of Revenue Recognition

The following table presents the timing of our revenue recognition:



	Twelve Months Ended December 31,
	2018		2017		2016
Products transferred at a point in time	$	21,359	$	20,744	$	25,079
Products and services transferred over time	35,176		24,422		30,082
Total Revenues	$	56,535	$	45,166	$	55,161

(1) As noted above, prior period amounts have not been adjusted under the modified retrospective method.

Contract Balances

The timing of revenue recognition, billings and cash collections results in billed accounts receivable, unbilled receivables (contract assets), and customer advances and deposits (contract liabilities) on the consolidated balance sheets. In our Air Pollution Control Technology segment, amounts are billed as work progresses in accordance with agreed-upon contractual terms. Generally, billing occurs subsequent to revenue recognition, resulting in contract assets. These assets are reported on the consolidated balance sheet on a contract-by-contract basis at the end of each reporting period. At December 31, 2018, 2017 and 2016, contract assets were approximately $5,540, $7,894 and $6,755 respectively, and are included in accounts receivable on the consolidated balance sheets.

However, the Company will periodically bill in advance of costs incurred before revenue is recognized, resulting in contract liabilities. These liabilities are reported on the consolidated balance sheet on a contract-by-contract basis at the end of each reporting period. Contract liabilities were $1,234, $2,403 and $1,730 at December 31, 2018, 2017 and 2016 respectively, and are included in other accrued liabilities on the consolidated balance sheets.

As of December 31, 2018 we had five construction contracts in progress that were identified as loss contracts and a provision for losses of $123 was recorded in other accrued liabilities on the consolidated balance sheet. As of December 31, 2017, we had four construction contracts in progress that were identified as loss contracts and a provision for losses of $117 was recorded in other accrued liabilities on the consolidated balance sheet.

Remaining Performance Obligations

Remaining performance obligations, represents the transaction price of Air Pollution Control technology booked orders for which work has not been performed. As of December 31, 2018, the aggregate amount of the transaction price allocated to remaining performance obligations was $12,384. The Company expects to recognize revenue on approximately $10,622 of the remaining performance obligations over the next 12 months with the remaining recognized thereafter.