Revenue

9 Months Ended

12 Months Ended

Sep. 30, 2022

Dec. 31, 2021

NOTE 4 - REVENUE

All of the Company’s revenue is derived from contracts with customers. In the following tables, revenue is disaggregated by major service line and timing of revenue recognition.


	Three months ended September 30,				Nine months ended September 30,
	2022		2021		2022			2021
AssetCare Initialization 1,5	$	54,743	$	259,013	$	498,213		$	1,077,577
AssetCare Solutions 2,5		2,688,087		7,060,883		11,372,289			19,575,341
Engineering Services 3,5		163,270		114,423		305,903			773,430
Contract modification revenue reversal 4,5		—		—		(2,571,676	)		—

	$	2,906,100	$	7,434,319	$	9,604,729		$	21,426,348

1	Revenues from initial implementation and activation of AssetCare projects, including the sale of hardware.

2	Revenues include sales of subscriptions to AssetCare, other subscriptions, post contract support and maintenance, perpetual software licenses, and installation and engineering services.

3	Revenues includes consulting, implementation and integration services entered into on a time and materials basis or fixed fee basis without the use of AssetCare.

During the nine months ended September 30, 2022, the Company cancelled a multi-year customer contract for which services had been performed in prior periods, resulting in a contract modification. As a result, revenue from AssetCare Initialization of $2,037,014 and AssetCare Solutions of $534,662 which were recorded in prior periods was reversed during the nine months ended September 30, 2022.

Revenues from Agnity: For the three months ended September 30, 2022, revenue from Agnity consisted of $4,789

for AssetCare Initialization, $403,477

for AssetCare Solutions, and $nil

for Engineering Services. For the nine months ended September 30, 2022, revenue from Agnity consisted of $13,360

for AssetCare Initialization, $4,408,905

for AssetCare Solutions, and $2,571,676

for Contract modification revenue reversal.


	Three months ended September 30,				Nine months ended September 30,
Revenue recognized	2022		2021		2022			2021
Over time 1,2	$	2,906,100	$	7,175,306	$	10,551,763		$	18,877,157
At a point in time upon completion 1,2		—		259,013		(947,034	)		2,549,191

	$	2,906,100	$	7,434,319	$	9,604,729		$	21,426,348

1	See table above and related footnote 4. The nine months ended September 30, 2022 reflects the reversal of $534,662 of revenue recognized over time and $2,037,014 of revenue recognized at point in time upon completion.

Revenues from Agnity: For the three months ended September 30, 2022, revenue from Agnity consisted of $403,477

for Over time and $4,789

for At a point in time upon completion. For the nine months ended September 30, 2022, revenue from Agnity consisted of $2,879,772

for Over time and $1,029,183

in net revenue reversal for At a point in time upon completion.

See Note 15 for the impact of deconsolidation of a subsidiary on revenue.

The Company’s revenue by location of the ultimate customer or consumer of product solution are as follows:


	Three months ended September 30,				Nine months ended September 30,
	2022		2021		2022		2021
Canada 1	$	1,793,547	$	3,908,593	$	3,064,814	$	11,760,782
Americas		435,958		1,813,304		3,603,887		4,484,977
Asia Pacific		410,432		1,562,398		2,116,289		4,860,571
Other		266,163		150,024		819,739		320,018

Total revenue	$	2,906,100	$	7,434,319	$	9,604,729	$	21,426,348

1	Includes impact of previously recognized revenue for contract modification as explained in tables above.

Significant changes in unbilled revenue and deferred revenue balances are as follows:


	Unbilled revenue			Deferred revenue
Balance at December 31, 2021	$	756,042			2,811,408
Additions		4,246,675			6,487,315
Less: transferred to trade and other receivables		(3,994,071	)		—
Less: recognized in revenue		—			(4,900,537	)
Deconsolidation of subsidiary		—			(2,474,114	)
Effect of movements in exchange rates		(90,657	)		65,758

Balance at September 30, 2022	$	917,989		$	1,989,830

NOTE 5 - REVENUE

The Company’s operations and main revenue streams are those described in Note 32(C). All of the Company’s revenue is derived from contracts with customers.

In the following tables, revenue is disaggregated by major service line and timing of revenue recognition.



	Year ended December 31,

	2021		2020		2019

AssetCare Initialization 1	$	1,250,181	$	7,689,232	$	5,964,663

AssetCare Solutions 2		23,461,748		12,809,054		2,939,582

Engineering Services 3		885,043		6,430,153		9,436,004

	$	25,596,972	$	26,928,439	$	18,340,249

Revenues from initial implementation and activation of AssetCare projects, including the sale of hardware.

Revenues include sales of subscriptions to AssetCare, other subscriptions, post contract support and maintenance, perpetual software licenses, and installation and engineering services.

Revenues includes consulting, implementation and integration services entered into on a time and materials basis or fixed fee basis without the use of AssetCare.



	Year ended December 31,

Timing of revenue recognition	2021		2020		2019

Over time	$	24,422,749	$	18,551,736	$	12,375,586

At a point in time upon completion		1,174,223		8,376,703		5,964,663

	$	25,596,972	$	26,928,439	$	18,340,249

Significant changes in unbilled revenue and deferred revenue balances are as follows:



	Unbilled revenue			Deferred revenue

Balance at January 1, 2019	$	—		$	133,678

Acquired in business combination (Note 17(c))		2,347,207			133,556

Acquired in business combination (Note 17(b))		—			457,259

Additions		9,595,535			5,309,436

Less: transferred to trade and other receivables		(11,278,312	)		—

Less: recognized in revenue		—			(4,878,419	)

Less: Loss allowance		(5,499	)		—

Effect of movement in exchange rates		—			(17,229	)

Balance at December 31, 2019	$	658,931		$	1,138,281

Acquired in business combination		117,686			–

Additions		11,478,436			6,316,586

Less: transferred to trade and other receivables		(11,557,665	)		–

Less: write-offs		(146,489	)		–

Less: recognized in revenue		–			(5,612,896	)

Less: applied to outstanding trade receivables		–			(30,586	)

Effect of movement in exchange rates		3,841			(40,265	)

Balance at December 31, 2020	$	554,740		$	1,771,120

Additions		7,470,881			10,616,893

Less: transferred to trade and other receivables		(7,269,579	)		–

Less: recognized in revenue		–			(9,585,211	)

Effect of movement in exchange rates		–			8,606

Balance at December 31, 2021 1	$	756,042		$	2,811,408

Unbilled revenue is included in trade and other receivables (Note 6) and relates to the Company’s right to consideration for work completed but not billed at the reporting date. Unbilled revenue is transferred to trade and other receivables when services are billed to customers.