Revenue Recognition The Company recognizes revenue under ASC 606, Revenue from Contracts with Customers . The core principle of the new revenue standard is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The following five steps are applied to achieve that core principle:  Step 1: Identify the contract with the customer,  Step 2: Identify the performance obligations in the contract,  Step 3: Determine the transaction price,  Step 4: Allocate the transaction price to the performance obligations in the contract, and  Step 5: Recognize revenue when the company satisfies a performance obligation. The Companys disaggregated revenues consist of the following for the nine months ended September 30, 2020 and 2019: Nine Months ended September 30, 2020 GWW Coolisys Ault Alliance Total Primary Geographical Markets North America $ 5,109,672 $ 3,100,552 $ (27,140 ) $ 8,183,084 Europe 694,478 288,282 - 982,760 Middle East 6,837,501 - - 6,837,501 Other 264,226 414,407 - 678,633 $ 12,905,877 $ 3,803,241 $ (27,140 ) $ 16,681,978 Major Goods RF/Microwave Filters $ 3,886,940 $  $  $ 3,886,940 Detector logarithmic video amplifiers 1,318,547   1,318,547 Power Supply Units  3,803,241  3,803,241 Power Supply Systems 862,889   862,889 Healthcare diagnostic systems 784,689   784,689 Defense systems 6,052,812   6,052,812 Lending activities   (27,140 ) (27,140 ) $ 12,905,877 $ 3,803,241 $ (27,140 ) $ 16,681,978 Timing of Revenue Recognition Goods transferred at a point in time $ 6,068,376 $ 3,803,241 $ (27,140 ) $ 9,844,477 Services transferred over time 6,837,501   6,837,501 $ 12,905,877 $ 3,803,241 $ (27,140 ) $ 16,681,978 Nine Months ended September 30, 2019 GWW Coolisys Ault Alliance Total Primary Geographical Markets North America $ 2,703,803 $ 4,590,840 $ 443,927 $ 7,738,570 Europe 6,341,396 16,804  6,358,200 Middle East 1,283,312 21,348  1,283,312 Other 447,786 269,440  717,226 $ 10,776,297 $ 4,898,432 $ 443,927 $ 16,097,308 Major Goods RF/Microwave filters $ 989,114 $  $  $ 989,114 Detector logarithmic video amplifiers 473,150   473,150 Power supply units 3,194,843 4,306,340  7,501,183 Power supply systems 1,423,971   1,423,971 Healthcare diagnostic systems 1,260,700   1,260,700 Defense systems 3,413,171   3,413,171 Lending activities   443,927 443,927 Digital currency mining  592,092  592,092 $ 10,754,949 $ 4,898,432 $ 443,927 $ 16,097,308 Timing of Revenue Recognition Goods transferred at a point in time $ 5,944,177 $ 4,898,432 $ 443,927 $ 11,286,536 Services transferred over time 4,810,772   4,810,772 $ 10,754,949 $ 4,898,432 $ 443,927 $ 16,097,308 Sales of Products The Company generates revenues from the sale of its products through a direct and indirect sales force. The Companys performance obligations to deliver products are satisfied at the point in time when products are received by the customer, which is when the customer obtains control over the goods. The Company provides standard assurance warranties, which are not separately priced, that the products function as intended. The Company primarily receives fixed consideration for sales of product. Some of the Companys contracts with distributors include stock rotation rights after six months for slow moving inventory, which represents variable consideration. The Company uses an expected value method to estimate variable consideration and constrains revenue for estimated stock rotations until it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur. To date, returns have been insignificant. The Companys customers generally pay within 30 days from the receipt of an invoice. Because the Companys product sales agreements have an expected duration of one year or less, the Company has elected to adopt the practical expedient in ASC 606-10-50-14(a) of not disclosing information about its remaining performance obligations. Manufacturing Services The Company provides manufacturing services in exchange primarily for fixed fees; however, the initial two MLSE units are subject to variable pricing under the $50 million purchase order from MTIX. Under the terms of the MLSE purchase order, the Company is entitled to cost plus $100,000 for the manufacture of the first two MLSE units. The Company has determined that the costs of manufacturing the MLSE units will decline over time because of a learning curve which will result in a greater amount of revenue being recognized for these initial two MLSE units. For manufacturing services, which include revenues generated by Enertec and in certain instances revenues generated by Gresham Power, the Companys performance obligation for manufacturing services is satisfied over time as the Company creates or enhances an asset based on criteria that are unique to the customer and that the customer controls as the asset is created or enhanced. Generally, the Company recognizes revenue based upon proportional performance over time using a cost to cost method which measures progress based on the costs incurred to total expected costs in satisfying its performance obligation. This method provides a depiction of the progress in providing the manufacturing service because there is a direct relationship between the costs incurred by the Company and the transfer of the manufacturing service to the customer. Manufacturing services that are recognized based upon the proportional performance method are included in the above table as services transferred over time and to the extent the customer has not been invoiced for these revenues, as accrued revenue in the accompanying consolidated balance sheets. Revisions to the Companys estimates may result in increases or decreases to revenues and income and are reflected in the consolidated financial statements in the periods in which they are first identified. The Company has elected the practical expedient to not adjust the promised amount of consideration for the effects of a significant financing component to the extent that the period between when the Company transfers its promised good or service to the customer and when the customer pays in one year or less. The aggregate amount of the transaction price allocated to the performance obligation that is partially unsatisfied as of September 30, 2020, for the MLSE units was approximately $48 million, representing 24 MLSE units. Based on our expectations regarding funding of the production process and our experience building the first machines, the Company expects to recognize the remaining revenue related to the partially unsatisfied performance obligation over an estimated three year period. The Company will be paid in installments for this performance obligation over the estimated period that the remaining revenue is recognized. Lending Activities Ault Alliance, through DP Lending, generates revenue from lending activities primarily through interest, origination fees and late/other fees. Interest income on these products is calculated based on the contractual interest rate and recorded as interest income as earned. The origination fees or original issue discounts are recognized over the life of the loan using the effective interest method.