Annual report pursuant to Section 13 and 15(d)

Revenue from Contracts with Customers

v3.22.2.2
Revenue from Contracts with Customers
 12 Months Ended
Dec. 31, 2021
Revenue from Contract with Customer [Abstract]  
Revenue from Contracts with Customers

Note 5. Revenue from Contracts with Customers

We recognize revenue when we transfer promised services to customers in an amount that reflects the consideration to which we expect to be entitled in exchange for those services.

Disaggregated revenue

The following table presents the Company’s revenues disaggregated into categories based on the nature of such revenues (in thousands):

Schedule of Disaggregated Revenue:

Years Ended December 31,

2021

2020

2019

Mining

$

184,422

 

$

11,984

 

$

6,741

Hosting

24,546

-

-

Engineering

4,178

-

-

Other

97

 

97

 

96

Total revenue

$

213,243

$

12,081

$

6,837

Contract balances

For the years ended December 31, 2021, 2020 and 2019, the Company did not recognize material bad-debt expense. Contract assets consist of costs and estimated earnings in excess of billings on uncompleted engineering contracts. The balance was entirely from the ESS Metron acquisition and was $9.9 million and $0 as of December 31, 2021 and 2020, respectively.

The Company’s contract liabilities primarily relate to upfront payments and consideration received from customers for data center hosting, billings in excess of costs and estimated earnings on uncompleted engineering contracts and the upfront license fee generated from our legacy animal health business. The table below presents changes in the total deferred revenue liability, for the years ended December 31, 2021 and 2020 (in thousands):

Years Ended December 31,

2021

2020

Beginning balance

$

776

 

$

873

 

Acquired contract balances

34,424

-

Revenue recognized from acquired contract balances

(1,500

)

-

Termination of an acquired customer contract

(5,700

)

-

Revenue recognized that was included in the beginning balance

(97

)

(97

)

Ending balance

$

27,903

$

776

Transaction price allocated to remaining performance obligations

Remaining performance obligations represent the transaction price of contracts for work that has not yet been performed. Amounts related to cryptocurrency mining are not included because the Company elected the practical expedient to not disclose amounts related to contracts with a duration of one year or less.

Hosting and Engineering revenue – remaining performance obligation

The table below presents estimated revenue expected to be recognized in the future related to the unsatisfied portion of the performance obligation at December 31, 2021 (in thousands):

(in thousands)

2022

2023

2024

2025

Thereafter

Total

Hosting(1)

3,414

3,414

3,414

3,414

8,304

21,960

Engineering

5,264

-

-

-

-

5,264

Total contract liabilities(2)

$

8,678

$

3,414

$

3,414

$

3,414

$

8,304

$

27,224

​(1)

Data center hosting revenue primarily includes upfront payments which the Company generally recognizes as services are provided.

​(2)

The Company elected the “right to invoice” practical expedient and therefore does not include amounts related to (1) the satisfaction of performance obligations recognized in the amount invoiced, and (2) variable consideration related to future services.

Other revenue – remaining performance obligation

As of December 31, 2021 and 2020, the aggregate amount remaining of the upfront license fee, for the right to access certain intellectual property relating to the Company’s Animal Health assets, was approximately $0.7 million and $0.8 million, respectively. The fee is being recognized ratably over the license term, which ends in 2028.

Additionally, we have elected to use the practical expedient to not adjust the transaction price for the existence of a significant financing component if the timing difference between a customer’s payment and our performance is one year or less.