Note 2 - Revenue Recognition

6 Months Ended

Jun. 30, 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 June 30, 2023						Three Months Ended June 30, 2022
	Partner		Edge to				Partner		Edge to
	Solutions		Cloud		Total		Solutions		Cloud		Total
Primary geographic area:
North America	$	5,087	$	658	$	5,745	$	8,254	$	1,023	$	9,277
Europe		59		116		175		63		18		81
Asia		605		—		605		1,036		—		1,036
Total	$	5,751	$	774	$	6,525	$	9,353	$	1,041	$	10,394

	Six Months Ended June 30, 2023						Six Months Ended June 30, 2022
	Partner		Edge to				Partner		Edge to
	Solutions		Cloud		Total		Solutions		Cloud		Total
Primary geographic area:
North America	$	11,969	$	1,467	$	13,436	$	16,459	$	1,587	$	18,046
Europe		134		181		315		153		54		207
Asia		915		—		915		1,873		—		1,873
Total	$	13,018	$	1,648	$	14,666	$	18,485	$	1,641	$	20,126

For the quarters ended June 30, 2023 and 2022, $6.4 million and $9.9 million of revenue was recorded at a point-in-time, and $0.1 million and $0.5 million of revenue was recorded over-time, respectively. For the six months ended June 30, 2023 and 2022, $14.4 million and $19.1 million of revenue was recorded at a point-in-time, and $0.3 million and $1.0 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 and six months ended June 30, 2023 and 2022. 

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

	Three Months Ended June 30, 2023			Six Months Ended June 30, 2023
	Contract			Contract
	Assets			Assets
Balance at beginning of period	$	138		$	—
Revenue recognized		169			301
Amounts invoiced		(45	)		(90	)
Reclassifications and other		—			51
Balance at end of period	$	262		$	262

	Three Months Ended June 30, 2023			Six Months Ended June 30, 2023
	Deferred			Deferred
	Revenue			Revenue
Balance at beginning of period	$	186		$	210
Revenue recognized		(140	)		(295	)
Amounts invoiced		80			160
Reclassifications and other		—			51
Balance at end of period	$	126		$	126

Contract acquisition costs

We capitalize contract acquisition costs for contracts with a life exceeding one year. Amortization of contract acquisition costs was $0 and $4,000 for the three months ended June 30, 2023 and 2022, respectively, and was $11,250 and $9,000 for the six months ended June 30, 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 June 30, 2023:

	Remainder of
	2023		2024		2025		2026		2027
Edge to Cloud	$	1,030,370	$	1,317,353	$	—	$	—	$	—

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.