REVENUE RECOGNITION

The Company adopted ASC Topic 606 Revenue from Contracts with Customers ("ASC 606") as of January 1, 2018. The underlying principle of this new guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration that the entity expects to be entitled to receive in exchange for those goods or services.

In accordance with the new guidance, the Company recognizes revenue at an amount that reflects the consideration that the Company expects to be entitled to receive in exchange for transferring goods or services to its customers. The Company's policy is to record revenue when control of the goods transfers to the customer and when services are performed. Net sales are comprised of gross revenues from sales of products less trade discounts and rebates as well as fees from the management of investment advisory services, as well as other specialty investment vehicles.

The Company’s contracts do not offer a right to return any of the products sold unless covered under the assurance-type warranty offered. Assurance-type warranties provide a customer with assurance that the related product will function as the parties intended because it complies with agreed-upon specifications. Such warranties do not represent a separate performance obligation. The Company does not offer additional service-type warranties for its products.

Costs incurred to obtain a customer contract are not material to the Company for the KBS or EBGL revenue streams. The Company elected to apply the practical expedient to not capitalize costs to obtain contracts with a duration of one year or less, which are expensed and included within Cost of sales in the Condensed Consolidated Statements of Operations.

The Company generally requires deposits prior to the start of production of customer orders. The Company will not finance any part of the sale. The full balance is due upon delivery. Below is a summary of deposits utilized during the year by operating segment:



	Modular Home Manufacturing			Structured Wall Panel Manufacturing			Total
(in thousands)
March 31, 2019	$	(133	)	$	(33	)	$	(166	)
Revenue recognized that was included in deposit at beginning of period	133			33			166
Increase due to cash received, excluding amounts recognized as revenue during the period	(205		)	(27		)	(232		)
June 30, 2019	$	(205	)	$	(27	)	$	(232	)

The Company has expanded its financial statement disclosures as required by this new standard. See Note 20, "Operating Segments" for additional disclosures provided as a result of this ASU.