Company: AWX
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0001437749-25-033887
Chunk: 3

Company: AVALON HOLDINGS CORP
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 1
Chunk 3
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 facility. The Company provides turnkey services, including daily operations, facilities management and management reporting for its customers. Currently, Avalon manages one captive disposal facility located in Ohio. The net operating revenues of the captive landfill operations are almost entirely dependent upon the volume of waste generated by the owner of the landfill for whom Avalon manages the facility.

Avalon is a minority owner with managerial control over twosalt water injection wells and its associated facility. Operations of the salt water injection wells have been suspended in accordance with the Chief of the Division of Oil and Gas Resources Management order (See Note 15). Due to the suspension of the salt water injection wells, there were nooperating revenues for the three and nine months ended September 30, 2025 and 2024.

For the three months ended September 30, 2025 and 2024, the net operating revenues related to waste management services represented approximately50% and47%, respectively, of Avalon’s total consolidated net operating revenues. Net operating revenues related to waste management services represented approximately 52% and 55%, respectively of Avalon’s total consolidated net operating revenues for the nine months ended September 30, 2025 and 2024.

For our waste management services contracts, the customer contracts with us to provide a series of distinct waste management services over time which integrates a set of tasks (i. e. removal, transportation and disposal of waste) into a single project. Avalon provides substantially the same service over time and the same method is used to measure the Company’s progress toward complete satisfaction of the performance obligation to transfer each distinct service in the series to the customer. The series of distinct waste management services, which are the same over time, meets the series provision criteria, and as such, the Company treats that series as a single performance obligation. The Company allocates the transaction price to the single performance obligation and recognizes revenue by applying a single measure of progress to that performance obligation. Avalon transfers control of the service over time and, therefore, satisfies the performance obligation and recognizes the revenue over time as the customer simultaneously receives and consumes the benefits provided by Avalon’s performance as we perform.

In addition, as the promise to provide services qualifies as a series accounted for as a single performance obligation, the Company applied the practical expedient guidance that allows an entity that is recognizing revenue over time by using an output method to recognize revenue equal to the amount that the entity has the right to invoice if the invoiced amount corresponds directly to the value transferred to the customer.