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Revenue - product sales and recycling services
 9 Months Ended
Sep. 30, 2024
Revenue from Contract with Customer [Abstract]  
Revenue - product sales and recycling services Revenue – product sales and recycling services
For the three months ended September 30, 2024For the three months ended September 30, 2023For the nine months ended September 30, 2024For the nine months ended September 30, 2023
Product revenue recognized in the period$4.3 $3.5 $10.7 $15.7 
Fair value pricing adjustments0.1 — 0.8 (6.0)
Product revenue$4.4 $3.5 $11.5 $9.7 
Recycling service revenue recognized in the period4.0 1.2 9.5 2.2 
Revenue$8.4 $4.7 $21.0 $11.9 
During the currently paused construction of the Rochester Hub project, the Company's principal lines of business are the sale of products (including Black Mass & Equivalents and shredded metal) and lithium-ion battery recycling services which together account for 100% of sales. The principal markets for the Company's products and recycling services are the United States, Canada, Germany, and Asia.
Product revenue, and the related trade accounts receivables are measured at initial recognition using provisional prices for the constituent metals and any unsettled sales are remeasured at the end of each reporting period using the market prices of the constituent metals. Changes in fair value are recognized as an adjustment to product revenue, and the related accounts receivable, and can result in gains and losses when the applicable metal prices increase or decrease from the date of initial recognition.
Accounts receivable, net
The Company recognizes current estimated credit losses (“CECL”) for trade receivables not subject to provisional pricing. The CECL for accounts receivable are estimated based on days past due consisting of customers with similar risk characteristics that operate under similar economic environments. The Company determines the CECL based on an evaluation of certain criteria and evidence of collection uncertainty including client industry profile. When specific customers are identified as no longer sharing the same risk profile as their current pool, they are removed from the pool and evaluated separately.
The allowance for credit losses as at September 30, 2024 was $nil (December 31, 2023 : $nil) and no expected credit loss provisions were recognized for the nine months ended September 30, 2024.
Bad debt expense recovery for the three and nine months ended September 30, 2024 was $nil and $1.0 million (Bad debt expense for the three and nine months ended September 30, 2023: $nil and $0.9 million).
Accounts receivable are stated at the amount the Company expects to collect. The Company generally does not require collateral or other security in support of accounts receivable. To reduce credit risk, the Company performs ongoing credit evaluations of its customers’ financial condition.
Deferred revenue
In the normal course of business, the Company receives advances from customers for the sale of products and the provision of lithium-ion battery recycling services. The table below depicts the activity in the deferred revenue account during the nine months ended September 30, 2024 and twelve months ended December 31, 2023.
Product Revenue
September 30, 2024December 31, 2023
Balance, beginning of the period$— $— 
Additions7.8 — 
Revenue recognized(7.8)— 
Balance, end of the period $— $— 
Current deferred revenue— — 
Non-current deferred revenue$— $— 
Recycling Service Revenue
September 30, 2024December 31, 2023
Balance, beginning of the period$5.5 $— 
Additions— 5.4 
Foreign exchange revaluation0.3 0.1 
Balance, end of the period $5.8 $5.5 
Current deferred revenue— 0.2 
Non-current deferred revenue$5.8 $5.3 
The remaining performance obligation (RPO) relates to the delivery of products or services for which cash has been received in advance. At September 30, 2024, $5.8 million relates to services and is expected to be recognized in 3-5 years