Note 2 - Revenue Recognition

12 Months Ended

Dec. 31, 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 operating segment (in thousands):

	Year Ended December 31, 2021						Year Ended December 31, 2020
	Partner		Edge to				Partner		Edge to
	Solutions		Cloud		Total		Solutions		Cloud		Total
Primary geographical area:
North America	$	31,226	$	3,615	$	34,841	$	36,141	$	4,198	$	40,339
Europe		360		236		596		1,460		595		2,055
Asia		4,930		—		4,930		4,656		94		4,750
Total	$	36,516	$	3,851	$	40,367	$	42,257	$	4,887	$	47,144

For the years ended December 31, 2021 and 2020, $38.1 million and $43.7 million of revenue was recorded at a point-in-time, and $2.3 million and $3.4 million of revenue was recorded over-time, respectively.

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 obligations not yet invoiced. We had no asset impairment charges related to contract assets during 2021 or 2020. Contract liabilities, presented as deferred revenue on our consolidated balance sheet, include payments received in advance of performance under the contract and are recognized as revenue when performance obligations are satisfied.

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

	December 31, 2021		December 31, 2020
Receivables	$	4,914	$	6,177
Short-term contract assets		46		456
Long-term contract assets		—		—
Short-term contract liabilities (deferred revenue)		944		2,088
Long-term contract liabilities (deferred revenue)		194		28

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

		2021		2020
		Contract		Contract
		Assets		Assets
Transferred to receivables from contract assets outstanding at the beginning of the period	$	—	$	47

		2021		2020
		Contract		Contract
		Liabilities		Liabilities
Revenue recognized that was included in contract liabilities at the beginning of the period	$	1,273	$	1,633

Contract acquisition costs

We capitalize certain contract acquisition costs consisting primarily of commissions paid when contracts are signed. We capitalized contract acquisition costs for contracts with a life exceeding one year. Amortization of contract acquisition costs was $61,000 and $89,000 for fiscal year ended December 31, 2021 and December 31, 2020, respectively. There were no asset impairment charges for contract acquisition costs for the periods noted above.

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, 2021.

	2022		2023		2024		2025		2026		Thereafter
Edge to Cloud	$	1,527	$	452	$	—	$	—	$	—	$	—

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.