Note 2 - Revenue Recognition

3 Months Ended

Mar. 31, 2023

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, 2023						Three Months Ended March 31, 2022
	Partner		Edge to				Partner		Edge to
	Solutions		Cloud		Total		Solutions		Cloud		Total
Primary geographic area:
North America	$	6,883	$	809	$	7,692	$	8,205	$	563	$	8,768
Europe		75		65		140		91		37		128
Asia		309		—		309		836		—		836
Total	$	7,267	$	874	$	8,141	$	9,132	$	600	$	9,732

For the quarters ended March 31, 2023 and 2022, $7.4 million and $9.3 million of revenue was recorded at a point-in-time, and $0.7 million and $0.4 million of revenue was recorded over-time, respectively.

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. 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, 2023 and 2022. 

Significant changes in the contract assets and the deferred revenue balances were as follows (in thousands):

	Three Months Ended March 31, 2023			Three Months Ended March 31, 2022
	Contract			Contract
	Assets			Assets
Balance at beginning of period	$	—		$	46
Revenue recognized		132			16
Amounts invoiced		(45	)		(45	)
Reclassifications and other		51			—
Balance at end of period	$	138		$	17

	Three Months Ended March 31, 2023			Three Months Ended March 31, 2022
	Deferred			Deferred
	Revenue			Revenue
Balance at beginning of period	$	210		$	1,138
Revenue recognized		(154	)		(269	)
Amounts collected or invoiced		80			295
Reclassifications and other		50			—
Balance at end of period	$	186		$	1,164

Contract acquisition costs

 

We capitalize contract acquisition costs for contracts with a life exceeding one year. Amortization of contract acquisition costs was $11,250 and $4,000 for the three months ended March 31, 2023 and 2022, 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 satisfaction of performance obligations varies based on the nature of the underlying promise and the customer. 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, 2023:

	Remainder of
	2023		2024		2025		2026		2027
Edge to Cloud	$	1,447,321	$	1,338,649	$	—	$	—	$	—

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.