Note 6 - Revenue

6 Months Ended

Mar. 31, 2022

Notes to Financial Statements

Revenue from Contract with Customer [Text Block]

6. Revenue

Disaggregation of Revenues

The following tables summarize revenues from contracts with customers for the three and six months ended March 31, 2022 and 2021, respectively, (in thousands) by subsidiary, which includes the parent (SOFO), our Netherlands location (SFI) and our Japanese location (MSKK) :

Three months ended March 31, 2022
	SOFO		SFI		MSKK		Eliminations			Total
Revenue:
Hardware	$	1,380	$	263	$	240	$	(255	)	$	1,628
Software		374		83		105		(72	)		490
Shipping		40		4		—		—			44
Product and other total		1,794		350		345		(327	)		2,162
Support		1,233		122		721		(156	)		1,920
Hosting		1,507		201		284		(216	)		1,776
Events		695		4		299		—			998
Installs, training & other		71		280		36		—			387
Services total		3,506		607		1,340		(372	)		5,081
Total revenue	$	5,300	$	957	$	1,685	$	(699	)	$	7,243

Six Months Ended March 31, 2022
	SOFO		SFI		MSKK		Eliminations			Total
Revenue:
Hardware	$	2,688	$	324	$	243	$	(324	)	$	2,931
Software		961		208		129		(137	)		1,161
Shipping		74		5		—		—			79
Product and other total		3,723		537		372		(461	)		4,171
Support		2,640		256		941		(317	)		3,520
Hosting		2,927		531		589		(434	)		3,613
Events		1,666		28		711		—			2,405
Installs, training & other		171		472		144		—			787
Services total		7,404		1,287		2,385		(751	)		10,325
Total revenue	$	11,127	$	1,824	$	2,757	$	(1,212	)	$	14,496

Three months ended March 31, 2021
	SOFO		SFI		MSKK		Eliminations			Total
Revenue:
Hardware	$	1,153	$	257	$	697	$	(314	)	$	1,793
Software		653		119		115		(109	)		778
Shipping		14		1		—		—			15
Product and other total		1,820		377		812		(423	)		2,586
Support		1,693		145		238		(202	)		1,874
Hosting		1,371		248		424		—			2,043
Events		784		30		530		—			1,344
Installs, training & other		272		17		575		—			864
Services total		4,120		440		1,767		(202	)		6,125
Total revenue	$	5,940	$	817	$	2,579	$	(625	)	$	8,711

Six Months Ended March 31, 2021
	SOFO		SFI		MSKK		Eliminations			Total
Revenue:
Hardware	$	2,468	$	343	$	777	$	(448	)	$	3,140
Software		1,440		220		174		(256	)		1,578
Shipping		27		2		—		—			29
Product and other total		3,935		565		951		(704	)		4,747
Support		3,499		324		477		(418	)		3,882
Hosting		2,848		506		1,128		(63	)		4,419
Events		1,837		47		1,402		—			3,286
Installs, training & other		689		27		826		—			1,542
Services total		8,873		904		3,833		(481	)		13,129
Total revenue	$	12,808	$	1,469	$	4,784	$	(1,185	)	$	17,876

Transaction price allocated to future performance obligations

As of  March 31, 2022, the aggregate amount of the transaction price that is allocated to our future performance obligations was approximately $3.1 million in the next three months, $7.0 million in the next twelve months, and the remaining $1.6 million thereafter.

Disclosures related to our contracts with customers

Timing may differ between the satisfaction of performance obligations and the invoicing and collection of amounts related to our contracts with customers. We record assets for amounts related to performance obligations that are satisfied but not yet billed and/or collected. Liabilities are recorded for amounts that are collected in advance of the satisfaction of performance obligations. These liabilities are classified as current and non-current unearned revenue.

Unearned revenues

Unearned revenues represent our obligation to transfer products or services to our client for which we have received consideration, or an amount of consideration is due, from the client. During the three and six months ended March 31, 2022, revenues recognized related to the amount included in the unearned revenues balance at the beginning of the period was $2.7 million and $6.3 million compared to $4.0 million and $8.2 million recognized during the three and six months ended March 31, 2021.

Assets recognized from the costs to obtain our contracts with customers

We recognize an asset for the incremental costs of obtaining a contract with a customer. We amortize these deferred costs, primarily capitalized commissions, proportionate with related revenues over the period of the contract. During the three and six months ended March 31, 2022, amortization expense related to the amount included in the capitalized commissions at the beginning of the period was $84 thousand and $261 thousand compared to $240 thousand and $457 thousand recognized during the three and six months ended March 31, 2021.