Note 2 - Revenue Recognition

3 Months Ended

Mar. 31, 2022

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):

	Three Months Ended March 31, 2022						Three Months Ended March 31, 2021
	Partner		Edge to				Partner		Edge to
	Solutions		Cloud		Total		Solutions		Cloud		Total
Primary geographic area:
North America	$	8,205	$	563	$	8,768	$	7,523	$	1,065	$	8,588
Europe		91		37		128		110		112		222
Asia		836		—		836		1,162		—		1,162
Total	$	9,132	$	600	$	9,732	$	8,795	$	1,177	$	9,972

For the quarter ended March 31, 2022 and 2021, $9.3 million and $8.8 million of revenue was recorded at a point-in-time, and $0.4 million and $1.2 million of revenue 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. 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 months ended March 31, 2022 and 2021. 

Significant changes in the contract assets and the deferred revenue balances during the three months ended March 31, 2022 and 2021 were as follows (in thousands):

	Three Months Ended March 31, 2022		Three Months Ended March 31, 2021
	Contract		Contract
	Assets		Assets
Transferred to receivables from contract assets outstanding at the beginning of the period	$	45	$	—

	Three Months Ended March 31, 2022		Three Months Ended March 31, 2021
	Deferred		Deferred
	Revenue		Revenue
Revenue recognized that was included in deferred revenue at the beginning of the period	$	205	$	756

 

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 $22,000 for the three months ended March 31, 2022 and 2021, 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 March 31, 2022:

	Remainder of
	2022		2023		After 2023
Edge to Cloud	$	1,044	$	454	$	—

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.