Note 2 - Revenue Recognition

12 Months Ended

Dec. 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):

	Year Ended December 31, 2022						Year Ended December 31, 2021
	Partner		Edge to				Partner		Edge to
	Solutions		Cloud		Total		Solutions		Cloud		Total
Primary geographical area:
North America	$	30,165	$	3,265	$	33,430	$	31,226	$	3,615	$	34,841
Europe		303		103		406		360		236		596
Asia		2,651		—		2,651		4,930		—		4,930
Total	$	33,119	$	3,368	$	36,487	$	36,516	$	3,851	$	40,367

For the years ended December 31, 2022 and 2021, $34.2 million and $38.1 million of revenue was recorded at a point-in-time, respectively. For each of the years ended December 31, 2022 and 2021, $2.3 million of revenue was recorded over-time.

Contract Balances

We receive payments from customers based upon contractual billing schedules. Our average customer payment terms range from 30 - 60 days. 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 2022 or 2021. 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, 2022		December 31, 2021
Receivables	$	3,985	$	4,914
Short-term contract assets		—		46
Short-term contract liabilities (deferred revenue)		201		944
Long-term contract liabilities (deferred revenue)		9		194

Our accounts receivable balance as of January 1, 2021 was $6,177,000, net of an allowance for doubtful accounts of $50,000.

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

	Year Ended December 31,
	2022			2021
	Contract			Contract
	Assets			Assets
Balance at beginning of period	$	46		$	456
Revenue recognized		49			181
Amounts invoiced		(45	)		(135	)
Reclassifications and other		(50	)		(456	)
Balance at end of period	$	—		$	46

	Year Ended December 31,
	2022			2021
	Contract			Contract
	Liabilities			Liabilities
Balance at beginning of period	$	1,138		$	2,116
Revenue recognized		(1,495	)		(1,977	)
Amounts invoiced		617			999
Reclassifications and other		(50	)		—
Balance at end of period	$	210		$	1,138

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 $14,000 and $61,000 for fiscal years ended December 31, 2022 and December 31, 2021, 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, 2022.

	2023		2024		2025		2026		2027		Thereafter
Edge to Cloud	$	1,612	$	1,330	$	—	$	—	$	—	$	—

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.