2. Revenues

The Company’s revenues are derived primarily from the sales of respiratory products, medical gas equipment and emergency medical products. The products are generally sold directly to distributors, customers affiliated with buying groups, individual customers and construction contractors, throughout the world.

The Company recognizes revenue from product sales upon the transfer of control, which is generally upon shipment or delivery, depending on the delivery terms set forth in the customer contract. Payment terms between Allied and its customers vary by the type of customer, country of sale, and the products offered. The term between invoicing and the payment due date is not significant. For certain customers or product orders, Allied may require advance payments. The contract liabilities are reflected as customer deposits on the Company's balance sheets.

Management exercises judgment in estimating variable consideration. Provisions for early payment discounts, rebates and returns and other adjustments are provided for in the period the related sales are recorded. Historical data is readily available and reliable, and is used for estimating the amount of the reduction in gross sales.

The Company provides rebates to wholesalers. Rebate amounts are based upon purchases using contractual amount for each product sold. Factors used in the rebate calculations include the identification of which products have been sold subject to a rebate and the customer or price terms that apply. Using known contractual allowances, the Company estimates the amount of the rebate that will be paid, and records the liability as a reduction of gross sales when it records the sale of the product. Settlement of the rebate generally occurs in the month following the sale.

The Company regularly analyzes the historical rebate trends and makes adjustments to reserves for changes in trends and terms of rebate programs. Historically, adjustments to prior years’ rebate accruals have not been material to net income.

Other allowances charged against gross sales include cash discounts and returns, which are not significant. Cash discounts are known within 15 to 30 days of sale, and therefore can be reliably estimated. Returns can be reliably estimated because the Company’s historical returns are low, and because sales return terms and other sales terms have remained relatively unchanged for several periods. Product warranties are also not significant.

The Company does not allocate transaction price as the Company has only one performance obligation and its contracts do not span multiple periods.

The Company operates in one segment consisting of the manufacturing, marketing and distribution of a variety of respiratory products used in the health care industry to hospitals, hospital equipment dealers, hospital construction contractors, home health care dealers and emergency medical product dealers. The Company’s product lines include respiratory care products, medical gas equipment and emergency medical products. Sales by region, and by product, are as follows:


	Sales by Region
	Three months ended				Six months ended
	December 31,				December 31,
	2020		2019		2020		2019

Domestic United States	$	6,797,291	$	5,451,615	$	12,900,780	$	11,195,850
Europe		2,078,512		69,449		3,447,073		397,116
Canada		512,592		212,976		880,533		369,378
Latin America		632,526		807,799		1,795,794		1,562,791
Middle East		511,256		86,383		1,017,982		223,957
Far East		571,086		681,316		1,249,683		1,535,756
Other International		265		247		1,231		574
	$	11,103,528	$	7,309,785	$	21,293,076	$	15,285,422


	Sales by Product
	Three months ended				Six months ended
	December 31,				December 31,
	2020		2019		2020		2019

Respiratory care products	$	1,838,325	$	2,061,248	$	3,986,664	$	4,217,451
Medical gas equipment		4,354,549		3,824,007		8,313,070		7,604,573
Emergency medical products		4,910,654		1,424,530		8,993,342		3,463,398
	$	11,103,528	$	7,309,785	$	21,293,076	$	15,285,422