Greenwave Technology Solutions, Inc. Revenue Disclosure
Revenue Recognition
The Company’s revenues are accounted for under ASC Topic 606, “Revenue From Contracts With Customers” (“ASC 606”) and generally do not require significant estimates or judgments based on the nature of the Company’s revenue streams. The sales prices are generally fixed at the point of sale and all consideration from contracts is included in the transaction price. The Company’s contracts do not include multiple performance obligations or material variable consideration.
In accordance with ASC 606, the Company recognizes 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 Company recognizes revenue in accordance with that core principle by applying the following:
| (i) | Identify the contract(s) with a customer; |
| (ii) | Identify the performance obligation in the contract; |
| (iii) | Determine the transaction price; |
| (iv) | Allocate the transaction price to the performance obligations in the contract; and |
| (v) | Recognize revenue when (or as) the Company satisfies a performance obligation. |
The Company primarily generates revenue by purchasing scrap metal from businesses and retail suppliers, processing it, and selling the ferrous and non-ferrous metals to customers. The Company also provides hauling services to certain corporate clients.
The Company realizes revenue upon the fulfillment of its performance obligations to customers. As of December 31, 2023 and 2022, the Company had a contract liability of $0 and $25,000, respectively, for contracts under which the customer had paid for and the Company had not yet delivered.
The following table details our contract liability activity for the years ended December 31, 2023 and 2022:
| Balance, December 31, 2021 | $ | |||
| Net transfers in due to new contract liabilities | 25,000 | |||
| Net transfers out to revenue | ||||
| Balance, December 31, 2022 | $ | 25,000 | ||
| Net transfers in due to new contract liabilities | ||||
| Net transfers out to other gain | (25,000 | ) | ||
| Balance, December 31, 2023 | $ |
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2023 | Apr 16, 2024 | Showing above |
| 2022 | Mar 31, 2023 | |
| 2021 | Apr 14, 2022 | |
| 2020 | Apr 16, 2021 | |
About Revenue Disclosures
Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.
Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.