REVENUE

9 Months Ended

Sep. 30, 2021

REVENUE

REVENUE

NOTE D — REVENUE

The timing of revenue recognition, customer billings and cash collections results in a contract asset or contract liability at the end of each reporting period. Contract assets consist of unbilled receivables or costs incurred where revenue recognized over time exceeds the amounts billed to customers. Contract liabilities include advance payments and billings in excess of revenue recognized. Certain customers make advance payments prior to the satisfaction of performance obligations on the contract. These amounts are recorded as contract liabilities until such performance obligations are satisfied. Contract assets and contract liabilities are determined on a contract by contract basis.

Contract assets are as follows (in thousands):

	September 30, 2021		December 31, 2020		Change
Contract assets	$	14,912	$	20,431	$	(5,519)

Contract assets are reported within accounts receivable on our condensed consolidated balance sheets. Changes in contract assets primarily results from the timing difference between our performance of services. Contract liabilities are reported as deferred revenue on our condensed consolidated balance sheets and amounted to $2.6 million as of December 31, 2020, of which $2.2 million was related to contract liabilities for services performed. For the three and nine months ended September 30, 2021, the Company recognized as revenue $0.6 million and $2.0 million of contract liabilities for services performed as the timing between customer payments and our performance of the services is generally no longer than six months.

Disaggregation of Revenue

The Company reports revenue by segment. The following tables present revenue by segment, as well as a reconciliation to total revenue for the three and nine months ended September 30, 2021 and 2020 (in thousands):

	Three months ended September 30,						Nine months ended September 30,
	2021						2021
	Asset Management						Asset Management
	Solutions		Tech Ops		Total Revenues		Solutions		Tech Ops		Total Revenues
USM	$	13,466	$	1,315	$	14,781	$	33,935	$	3,574	$	37,509
Whole asset sales		27,408		-		27,408		83,868		-		83,868
Engineered solutions		-		1,424		1,424		-		3,537		3,537
Total products		40,874		2,739		43,613		117,803		7,111		124,914
Leasing		8,002		-		8,002		20,624		-		20,624
Services		-		21,683		21,683		-		78,116		78,116
Total revenues	$	48,876	$	24,422	$	73,298	$	138,427	$	85,227	$	223,654

	Three months ended September 30,						Nine months ended September 30,
	2020						2020
	Asset Management						Asset Management
	Solutions		Tech Ops		Total Revenues		Solutions		Tech Ops		Total Revenues
USM	$	9,025	$	515	$	9,540	$	30,594	$	1,989	$	32,583
Whole asset sales		-		-		-		3,103		-		3,103
Engineered solutions		-		382		382		-		2,040		2,040
Total products		9,025		897		9,922		33,697		4,029		37,726
Leasing		20,627		-		20,627		47,637		-		47,637
Services		-		26,516		26,516		-		74,193		74,193
Total revenues	$	29,652	$	27,413	$	57,065	$	81,334	$	78,222	$	159,556