Note 2 - Revenue Recognition

12 Months Ended

Dec. 31, 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 market, major product line and timing of revenue recognition, and includes a reconciliation of the disaggregated revenue with reportable segments (in thousands):

	Year Ended December 31, 2020						Year Ended December 31, 2019
	Partner		Edge to				Partner		Edge to
	Solutions		Cloud		Total		Solutions		Cloud		Total
Primary geographical markets:
North America	$	36,141	$	4,198	$	40,339	$	42,443	$	7,667	$	50,110
Europe		1,460		595		2,055		1,273		750		2,023
Asia		4,656		94		4,750		6,912		238		7,150
Total	$	42,257	$	4,887	$	47,144	$	50,628	$	8,655	$	59,283
Major products/services lines:
Partner Solutions	$	42,257	$	-	$	42,257	$	50,628	$	-	$	50,628
Edge to Cloud		-		4,887		4,887		-		8,655		8,655
Total	$	42,257	$	4,887	$	47,144	$	50,628	$	8,655	$	59,283

Contract Balances

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

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 sheet, include payments received in advance of performance under the contract and are recognized as revenue when performance obligations are satisfied. We had

no

asset impairment charges related to contract assets during

2020

or

2019.

The following table provides information about receivables, contract assets and contract liabilities from contracts with customers (in thousands):

	December 31, 2020		December 31, 2019
Receivables	$	6,177	$	9,216
Short-term contract assets		456		494
Long-term contract assets		-		237
Short-term contract liabilities (deferred revenue)		2,165		1,559
Long-term contract liabilities (deferred revenue)		28		903

Significant changes in contract assets and liabilities balances were as follows (in thousands):

	December 31, 2020				December 31, 2019
	Contract		Contract		Contract		Contract
	Assets		Liabilities (1)		Assets		Liabilities (1)
Revenue recognized that was included in the contract liability at beginning of the period		n/a	$	1,633		n/a	$	2,033
Transferred to receivables from contract assets outstanding at beginning of the period	$	47		n/a	$	302		n/a

(

1

)

Comprised of deferred revenue

Contract acquisition costs

In connection with the adoption of Topic

606,

we capitalize certain contract acquisition costs consisting primarily of commissions paid when contracts are signed. For contracts that have a duration of less than

one

year, we follow a Topic

606

practical expedient and expense these costs when incurred. For contracts with lives exceeding

one

year, as is more common with our DataV software bookings, we record these costs in proportion to each completed contract performance obligation. During the years ended

December 31, 2020

and

December 31, 2019,

we recorded

$89,000

and

$108,000

in amortization of capitalized contract acquisition costs, respectively. There were

no

impairment losses recorded related to costs capitalized. Contract acquisition costs capitalized during the years ended 

December 31, 2020

and

December 31, 2019 

were

$0

and

$151,000,

respectively.

Transaction Price Allocated To 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

December 31, 2020

.

	2021		2022		2023		2024		2025		Thereafter
Partner Solutions	$	92	$	6	$	6	$	9	$	-	$	-
Edge to Cloud	$	2,352	$	7	$	-	$	-	$	-	$	-

Practical expedients and exemptions

We generally expense sales commissions when incurred because the amortization period would have been less than

one

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

When applicable and appropriate, the Company utilizes the 'as-invoiced' practical expedient which permits revenue recognition upon invoicing.