Note 2 - Revenue Recognition

9 Months Ended

Sep. 30, 2020

Notes to Financial Statements

Revenue from Contract with Customer [Text Block]

2.

Revenue Recognition

 

Disaggregation of revenue

The following table provides information about disaggregated revenue by primary geographical area and includes a reconciliation of the disaggregated revenue with reportable segments (in thousands):

	Three Months Ended September 30, 2020						Three Months Ended September 30, 2019
			Edge to						Edge to
	Partner Solutions		Cloud		Total		Partner Solutions		Cloud		Total
Primary geographic area:
North America	$	7,819	$	1,100	$	8,919	$	10,851	$	1,863	$	12,714
Europe		613		172		785		164		177		341
Asia		713		3		716		1,541		45		1,586
Total	$	9,145	$	1,275	$	10,420	$	12,556	$	2,085	$	14,641

	Nine Months Ended September 30, 2020						Nine Months Ended September 30, 2019
			Edge to						Edge to
	Partner Solutions		Cloud		Total		Partner Solutions		Cloud		Total
Primary geographic area:
North America	$	28,104	$	2,345	$	30,449	$	31,687	$	5,932	$	37,619
Europe		1,344		475		1,819		1,086		477		1,563
Asia		3,712		93		3,805		4,568		167		4,735
Total	$	33,160	$	2,913	$	36,073	$	37,341	$	6,576	$	43,917

Contract balances

We receive payments from customers based upon contractual billing schedules; accounts receivable is recorded when the right to consideration becomes unconditional. Contract assets include amounts related to our contractual right to consideration for completed performance obligations

not

yet invoiced and deferred contract acquisition costs, which are amortized over time as the associated revenue is recognized. Contract liabilities, presented as deferred revenue on our condensed consolidated balance sheets, include payments received in advance of performance under the contract and are realized when the associated revenue is recognized. We had

no

asset impairment charges related to contract assets for each of the

three

and

nine

months ended

September 30, 2020

and

2019

. 

Significant changes in the contract assets and the deferred revenue balances during the

three

and 

nine

months ended

September 30, 2020

were as follows (in thousands):

	Three Months Ended September 30, 2020				Nine Months Ended September 30, 2020
	Contract		Deferred		Contract		Deferred
	Assets		Revenue		Assets		Revenue
Revenue recognized that was included in deferred revenue at December 31, 2019	$	—	$	412	$	—	$	1,118
Transferred to receivables from contract assets recognized at December 31, 2019		—		—		15		—

Contract acquisition costs

We capitalize contract acquisition costs for contracts with a life exceeding

one

year. Amortization of contract acquisition costs was

$23,000

and

$35,000

for the

three

months ended

September 30, 2020

and

2019

, respectively and was

$68,000

and

$42,000

for the

nine

months ended

September 30, 2020

and

2019

, respectively. There were

no

asset impairment charges for contract acquisition costs for any of the periods noted above. 

Transaction price allocated to the remaining performance obligations

The following table includes estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied or partially unsatisfied at the end of the reporting period (in thousands). The estimated revenue does

not

include contracts with original durations of

one

year or less, amounts of variable consideration attributable to royalties, or contract renewals that were unexercised as of

September 30, 2020

:

	Remainder of
	2020		2021		After 2021
Partner Solutions	$	66	$	3	$	9
Edge to Cloud		591		1,483		—

Practical expedients and exemptions

We apply a practical expedient and fully expense contract acquisition costs, such as sales commissions, as incurred because the amortization period is less than

one

year. We record these costs within selling, general and administrative expenses.