RE:RE:RE:RE:Grow trials or 10 year payment plan but not both14. Revenue
The Company recognizes revenue at the point in time when control is transferred to the customer, which varies by contract but is usually on shipment or upon completion of installation. The Company’s payment terms range from 30 days to 10 years from the transfer of control.
For sales that are collected over more than one year, the Company calculates the discounted cash flow (“DCF”) of the sales proceeds and records the discounted amount as revenue. The accounts receivable is subsequently accreted as interest income over the term of the payment schedule.
During the three months ended March 31, 2022, the Company had revenues of $31,500 (2021 - $16,597). The Company derives all of its revenues from its sole operating segment, dissolved CO2 for third-party protected grower plant enrichment.