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Basis of Presentation and Summary of Significant Accounting Policies: Revenue Recognition, Policy (Policies)

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Basis of Presentation and Summary of Significant Accounting Policies: Revenue Recognition, Policy (Policies)
9 Months Ended
Sep. 30, 2015
Policies  
Revenue Recognition, Policy

Revenue Recognition - The Company sells its equipment (HWX-30 heater, HWX-30S mobile heater and HWX-AP-40 asphalt processor), as well as certain consumables to third parties.  Equipment sales revenue is recognized when all of the following criteria are satisfied:  (a) persuasive evidence of a sales arrangement exists; (b) price is fixed and determinable; (c) collectability is reasonably assured; and (d) delivery has occurred.  Persuasive evidence of an arrangement and a fixed or determinable price exist once the Company receives an order or contract from a customer.  The Company assesses collectability at the time of the sale and if collectability is not reasonably assured, the sale is deferred and not recognized until collectability is probable or payment is received.  Typically, title and risk of ownership transfer when the equipment is shipped.

 

Other revenue represents revenue on consumables, license fees and franchise fees.