Note 2 - Revenue Recognition

9 Months Ended

Sep. 30, 2021

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, 2021						Three Months Ended September 30, 2020
	Partner		Edge to				Partner		Edge to
	Solutions		Cloud		Total		Solutions		Cloud		Total
Primary geographic area:
North America	$	8,294	$	964	$	9,258	$	7,819	$	1,100	$	8,919
Europe		68		44		112		613		172		785
Asia		1,276		—		1,276		713		3		716
Total	$	9,638	$	1,008	$	10,646	$	9,145	$	1,275	$	10,420

	Nine Months Ended September 30, 2021						Nine Months Ended September 30, 2020
	Partner		Edge to				Partner		Edge to
	Solutions		Cloud		Total		Solutions		Cloud		Total
Primary geographic area:
North America	$	23,372	$	2,695	$	26,067	$	28,104	$	2,345	$	30,449
Europe		275		201		476		1,344		475		1,819
Asia		4,746		—		4,746		3,712		93		3,805
Total	$	28,393	$	2,896	$	31,289	$	33,160	$	2,913	$	36,073

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. 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, 2021 and 2020. 

Significant changes in the contract assets and the deferred revenue balances during the three and nine months ended September 30, 2021 were as follows:

	Three Months Ended September 30, 2021		Nine Months Ended September 30, 2021
	Contract		Contract
	Assets		Assets
Transferred to receivables from contract assets outstanding at December 31, 2020		—		—

	Three Months Ended September 30, 2021		Nine Months Ended September 30, 2021
	Deferred		Deferred
	Revenue		Revenue
Revenue recognized that was included in deferred revenue at December 31, 2020	$	435,835	$	1,515,077

Contract acquisition costs

We capitalize contract acquisition costs for contracts with a life exceeding one year. Amortization of contract acquisition costs was $4,000 and $23,000 for the three months ended September 30, 2021 and 2020, respectively, and was $57,000 and $68,000 for the nine months ended September 30, 2021 and 2020, 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. 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, 2021:

	Remainder of
	2021		2022		After 2022
Edge to Cloud		315,944		1,419,096		466,287

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.