NOTE H — REVENUE

Revenue is generated primarily from contracts to manufacture or process steel products. Most of the Company’s revenue is generated by sales of material out of the Company’s inventory but a portion of the Company’s revenue is derived from processing of customer owned material. Generally, the Company’s performance obligations are satisfied, control of our products is transferred, and revenue is recognized at a single point in time, when title transfers to our customer for product shipped or when services are provided. Revenues are recorded net of any sales incentives. Shipping and other transportation costs charged to customers are treated as fulfillment activities and are recorded in both revenue and cost of sales at the time control is transferred to the customer. Costs related to obtaining sales contracts are incidental and expensed when incurred. Because customers are invoiced at the time title transfers and the Company’s rights to consideration are unconditional at that time, the Company does

not

maintain contract asset balances. Additionally, the Company does

not

maintain contract liability balances, as performance obligations are satisfied prior to customer payment for product. The Company offers industry standard payment terms.

The Company has

two

reportable segments: Coil and Tubular. Coil primarily generates revenue from temper passing and cutting to length hot-rolled steel coils. Coil segment revenue consists of

three

main product types: Prime Coil, Non-Standard Coil and Customer Owned Coil. Tubular primarily generates revenue from the manufacture, distribution and processing of steel pipe. Tubular segment revenue consists of

three

main product or service types: Manufactured Pipe, Mill Reject Pipe and Pipe Finishing Services. The following table disaggregates our revenue by product for each of our reportable business segments for the

three

and

six

month periods ended

September 30, 2018

and

2017,

respectively:

	Three Months Ended September 30,				Six Months Ended September 30,
	2018		2017		2018		2017
Coil Segment:
Prime Coil		29,575,814		15,459,712		54,351,845		29,735,302
Non-standard Coil		4,894,421		4,442,760		11,004,879		7,811,364
Customer Owned Coil		358,209		225,367		600,920		591,008
		34,828,444		20,127,839		65,957,644		38,137,674
Tubular Segment:
Manufactured Pipe		14,214,209		2,989,288		25,169,596		6,322,722
Mill Reject Pipe		4,306,980		1,814,391		9,727,841		3,036,327
Pipe Finishing Services		82,396		1,146,192		770,266		1,664,256
		18,603,585		5,949,871		35,667,703		11,023,305