Company: AWX
Filing Date: 2025-05-07
Form Type: 10-Q
Source: 0001437749-25-015162
Chunk: 7

Company: AVALON HOLDINGS CORP
Filing Date: 2025-05-07
Form: 10-Q
Item: Part I, Item 1
Chunk 7
---
 567      $               670      ( 447      $                  790  

Contract Liabilities

Contract liabilities include unrecognized or deferred revenues relating to membership dues and customer advance deposits. We record deferred revenue when cash payments are received in advance of satisfying our performance obligation. We classify deferred membership dues revenue as current based on the timing of when we expect to recognize revenue for the membership commitment based on the Company satisfying the stand ready performance obligation throughout the annual membership period. The unrecognized or deferred revenues related to membership dues in our Condensed Consolidated Balance Sheets were approximately $5.1million at March 31, 2025 and $3.5million at December 31, 2024, respectively.

Customer advance deposits are recorded as a liability until the goods or services are provided to the customer. Generally, customer advances, and corresponding performance obligation are satisfied within 12 months of the date of receipt of advance payment. The unrecognized revenues related to customer advance deposits are recorded in “ Other liabilities and accrued expenses” in our Condensed Consolidated Balance Sheets. Customer advance deposits were approximately $1.6million at both March 31, 2025 and December 31, 2024, respectively.

The following table presents changes in our contract liabilities during the three months ended March 31, 2025 and 2024 (in thousands):

                                         Balance at                                     Revenue                      Balance at                
                                         Beginning of Period                            Recognized                   End of Period             
 ───────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Contract Liabilities:                                                                                                                        
  Deferred membership dues revenue                                                                                                             
  Three months ended March 31, 2025      $                        3,524      3,443      $               ( 1,833      $                  5,134  
  Three months ended March 31, 2024      $                        3,443      3,689      $               ( 1,974      $                  5,158  
  Customer advance deposits                                                                                                                    
  Three months ended March 31, 2025      $                        1,565        505      $                 ( 423      $                  1,647  
  Three months ended March 31, 2024      $                        1,223        483      $                 ( 395      $                  1,311  

Note 6. Property and Equipment

Property and equipment is stated at cost and depreciated using the straight-line method over the estimated useful