Revenue Recognition

12 Months Ended

Oct. 31, 2020

Revenue From Contract With Customer [Abstract]

Revenue Recognition

Note 2. Revenue Recognition

Contract Balances

Contract assets as of October 31, 2020 and 2019 were $16.9 million and $11.3 million, respectively. The contract assets relate to the Company’s rights to consideration for work completed but not billed. These amounts are included on a separate line item as Unbilled receivables, and balances expected to be billed later than one year from the balance sheet date are included within Other assets on the accompanying Consolidated Balance Sheets. The net change in contract assets represents amounts recognized as revenue offset by customer billings. For the years ended October 31, 2020 and 2019, a total of $5.9 million and $6.6 million, respectively, was transferred to accounts receivable from contract assets recognized at the beginning of the period and an additional adjustment was made to reduce contract assets as a result of the acquisition of the Bridgeport Fuel Cell Project (refer to Note 3. “Acquisition” for additional information).

Contract liabilities as of October 31, 2020 and 2019 were $41.9 million and $40.2 million, respectively. The contract liabilities relate to the advance billings to customers for services that will be recognized over time and in some instances for deferred revenue relating to license performance obligations that will be recognized at a future point in time. The Company has discontinued revenue recognition of the deferred license revenue related to the terminated POSCO Energy License Agreements given the pending arbitration and will continue to evaluate this deferred revenue in future periods. As of October 31, 2020, $22.2 million related to the terminated POSCO Energy License Agreements is included within Long-term deferred revenue on the accompanying Consolidated Balance Sheets. The net change in contract liabilities represents customer billings offset by revenue recognized.

Remaining Performance Obligations

Remaining performance obligations are the aggregate amount of total contract transaction price that is unsatisfied or partially unsatisfied. As of October 31, 2020, the Company’s total remaining performance obligations for service agreements was $146.8 million, for license agreements was $22.2 million and for Advanced Technologies contracts was $49.2 million. Service revenue in periods in which there are no module replacements is expected to be relatively consistent from period to period, whereas module replacements will result in an increase in revenue when replacements occur.

Impacts of Adoption of Topic 606

The following table summarizes the impacts of Topic 606 on the Company’s consolidated financial statements for the year ended October 31, 2019:

	For the Year Ended October 31, 2019
						Balances without
						adoption of
	As reported			Adjustments		Topic 606
Total revenues	$	60,752		$	4,085	$	64,837
Total cost of revenues		82,021			1,478		83,499
Gross loss		(21,269	)		2,607		(18,662	)
Administrative and selling expenses		31,874			-		31,874
Research and development expenses		13,786			-		13,786
Loss from operations		(66,929	)		2,607		(64,322	)
Interest expense		(10,623	)		-		(10,623	)
Other income, net		93			-		93
Loss before provision for income taxes		(77,459	)		2,607		(74,852	)
Provision for income taxes		(109	)		-		(109	)
Net loss	$	(77,568	)	$	2,607	$	(74,961	)

The impact of Topic 606 on Accumulated Deficit were a $9.3 million decrease and a $6.6 million decrease on the Accumulated Deficit as of October 31, 2019 and November 1, 2018, respectively, and were primarily related to changes in Deferred revenue.