REVENUE

12 Months Ended

Dec. 31, 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	Year Ended December 31,				Year Ended December 31,					Year Ended December 31,
	2023		2022		2023		2022			2023		2022
Proactive services	$	-	$	-	$	19,879	$	15,202	(a)	$	19,879	$	15,202
Premium services		-		-		4,773		2,988	(a)		4,773		2,988
Brand protection services		661		1,386		-		-			661		1,386
	$	661	$	1,386	$	24,652	$	18,190		$	25,313	$	19,576

(a) Revenue is our Precision Logistics Segment in 2022 includes revenue since the acquisition date of our PeriShip Global business, on April 22, 2022.

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 year ended December 31, 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 December 31, 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
	December 31,
In Thousands	2023			2022
Beginning balance, January 1	$	1,185		$	-
Contract asset additions		3,598			2,502
Reclassification to accounts receivable, billed to customers		(3,501	)		(1,317	)
Ending balance (1)	$	1,282		$	1,185

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