REVENUE RECOGNITION

6 Months Ended

Jun. 30, 2024

REVENUE RECOGNITION

REVENUE RECOGNITION

4. REVENUE RECOGNITION

Immersion 

Disaggregated Revenue

The following table presents the disaggregation of our revenue of Immersion for the three and six months ended June 30, 2024 and 2023 (in thousands):

		Three Months Ended June 30,				Six Months Ended June 30,
		2024		2023		2024		2023
Fixed fee license revenue	$	48,779	$	1,254	$	87,507	$	2,404
Per-unit royalty revenue		3,624		5,729		8,743		11,653
Total revenues	$	52,403	$	6,983	$	96,250	$	14,057

Per-unit Royalty Revenue

As a result of accruing per-unit royalty revenue for the quarter based on such estimates, adjustments will be required in the following quarter to true up revenue to the actual amounts reported by our licensees. In the three months ended June 30, 2024, we recorded no adjustments to royalty revenue recognized in the previous quarter. We recorded adjustments of $0.3 million to increase royalty revenue during the three months ended June 30, 2023.

Contract Assets

As of June 30, 2024, we had contract assets of $2.8 million included within Prepaid expenses and other current assets and $33.7 million within Other assets on the Condensed Consolidated Balance Sheets. As of December 31, 2023, we had contract assets of $7.7 million included within Prepaid expenses and other current assets, and $0.1 million included within Other assets on the Condensed Consolidated Balance Sheets. 

Based on contracts signed and payments received as of June 30, 2024, we expect to recognize $20.7 million in revenue under our fixed fee license agreements, which are satisfied over time, including $16.7 million over one to three years and $4.1 million over more than three years.

Contract assets increased by $28.3 million from January 1, 2024 to June 30, 2024, primarily due to increase in unbilled revenue related to the new contracts we entered into during the six months ended June 30, 2024.

Deferred Revenue

The following table presents changes in deferred revenue associated with Immersion’s contract liabilities (in thousands): 

		June 30, 2024
Deferred revenue at the beginning of period	$	12,629
Additions to deferred revenue during the period		10,526
Reductions to deferred revenue for revenue recognized during the period		(2,408	)
Deferred revenue balance at the end of period:	$	20,747

Barnes & Noble Education

Disaggregated Revenue

The following table disaggregated the revenue associated with our major product and service offerings (in thousands):

		June 10 2024, to June 30, 2024
Course material sale	$	26,814
General merchandise sale		16,008
Services and other revenue		2,251
Total product and other revenue		45,073
Course material rental income		1,948
Total revenue	$	47,021

Deferred Revenue

The following table presents changes in deferred revenue associated with Barnes & Noble Education's contract liabilities (in thousands): 

		June 30, 2024
Deferred revenue as of the acquisition date	$	11,044
Additions to deferred revenue during the period		2,943
Reductions to deferred revenue for revenue recognized during the period		(2,435	)
Deferred revenue balance at the end of period:	$	11,552

  As of December 31, 2022, total deferred revenue was $17.4 million. We recognized $2.3 million of deferred revenue during the six months ended June 30, 2023.