REVENUE

6 Months Ended

Jun. 30, 2024

Revenue from Contract with Customer [Abstract]

REVENUE

NOTE 2 – 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 June 30,				Three Months Ended June 30,				Three Months Ended June 30,
	2024		2023		2024		2023		2024		2023
Proactive services	$	-	$	-	$	3,945	$	4,200	$	3,945	$	4,200
Premium services		-		-		1,299		1,014		1,299		1,014
Brand protection services		108		121		-		-		108		121
	$	108	$	121	$	5,244	$	5,214	$	5,352	$	5,335

	Authentication				Precision Logistics				Consolidated
Revenue	Six Months Ended June 30,				Six Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023		2024		2023
Proactive services	$	-	$	-	$	8,170	$	8,704	$	8,170	$	8,704
Premium services		-		-		2,688		1,924		2,688		1,924
Brand protection services		253		368		-		-		253		368
	$	253	$	368	$	10,858	$	10,628	$	11,111	$	10,996

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 six-month period ended June 30, 2024, 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 June 30, 2024, 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
	June 30,
In Thousands	2024			2023
Beginning balance, January 1	$	1,282		$	1,185
Contract asset additions		4,329			3,326
Reclassification to accounts receivable, billed to customers		(4,860	)		(3,777	)
Ending balance (1)	$	751		$	734

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