REVENUE

9 Months Ended

Sep. 30, 2023

Revenue from Contract with Customer [Abstract]

REVENUE

NOTE 3 – REVENUE

Revenue by Category

The following series of tables present our revenue disaggregated by various categories (dollars in thousands).

	Authentication				Precision Logistics				Consolidated
Revenue	Three Months Ended September 30,				Three Months Ended September 30,				Three Months Ended September 30,
	2023		2022		2023		2022		2023		2022
Proactive services	$	-	$	-	$	4,038	$	4,026	$	4,038	$	4,026
Premium services		-		-		1,419		1,010		1,419		1,010
Brand protection services		147		179		-		-		147		179
	$	147	$	179	$	5,457	$	5,036	$	5,604	$	5,215

	Authentication				Precision Logistics				Consolidated
Revenue	Nine Months Ended September 30,				Nine Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022		2023		2022
Proactive services	$	-	$	-	$	12,742	$	7,341	$	12,742	$	7,341
Premium services		-		-		3,343		1,926		3,343		1,926
Brand protection services		515		606		-		-		515		606
	$	515	$	606	$	16,085	$	9,267	$	16,600	$	9,873

Contract Balances 

The timing of revenue recognition, billings and cash collections results in unbilled revenue (contract assets) and deferred revenue (contract liabilities) on the consolidated balance sheets. Amounts charged to our clients become billable according to the contract terms, which usually consider the delivery completion. Unbilled amounts will generally be billed and collected within 30 days but typically no longer than 60 days. When we advance bill clients prior to the work being performed, generally, such amounts will be earned and recognized in revenue within twelve months. These assets and liabilities are reported on the consolidated balance sheets on a contract-by-contract basis at the end of each reporting period. Changes in the contract asset and liability balances during the nine-month period ended September 30, 2023, were not materially impacted by any other factors.

Applying the practical expedient in ASC Topic 606, we recognize the incremental costs of obtaining contracts (i.e. sales commissions) as an expense when incurred if the amortization period of the assets that we otherwise would have recognized is one year or less. As of September 30, 2023, we did not have any capitalized sales commissions.

For all periods presented, contract liabilities were not significant. 

The following table provides information about contract assets from contracts with customers: 

	Contract Asset
	September 30,
In Thousands	2023			2022
Beginning balance, January 1	$	1,185		$	-
Contract asset additions		2,316			1,317
Reclassification to accounts receivable, billed to customers		(2,616	)		(622	)
Ending balance (1)	$	885		$	695

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(1) Included within "Unbilled revenue" on the accompanying Consolidated Balance sheets.