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Deferred Revenue
6 Months Ended
Jun. 30, 2024
Revenue from Contract with Customer [Abstract]  
Deferred Revenue Deferred Revenue
The Company records deferred revenue when revenue is to be recognized subsequent to invoicing. For extended service contracts, the Company generally invoices customers at the beginning of the extended service contract term. The Company’s extended service contracts typically have one to three-year terms. Deferred revenue also includes payments for training not yet delivered.
The following table provides changes in the deferred revenue balance for the three and six months ended June 30, 2024 and 2023 (in thousands):
Three Months Ended
June 30,
Six Months Ended
June 30,
2024202320242023
Beginning balance$10,455 $13,699 $11,916 $13,498 
Add: Payments received from current period sales6,460 5,939 9,480 11,087 
Less: Revenue recognized from current period sales(1,725)(589)(1,882)(2,291)
Less: Revenue recognized from beginning balance(3,170)(5,042)(7,494)(8,287)
Pending lease cancellations(1,715)— (1,715)— 
Ending balance$10,305 $14,007 $10,305 $14,007 
Approximately 85% of the Company’s deferred revenue balance of $10.3 million as of June 30, 2024 will be recognized over the next 12 months.
The fixed annual license fees received related to the AviClear contracts are deferred and recognized over the annual lease periods. The AviClear deferred license fee balance included in the total deferred revenue balance at June 30, 2024, and December 31, 2023 was $0.9 million and $2.1 million, respectively.
Costs for extended service contracts were $2.2 million and $3.8 million for the three and six months ended June 30, 2024, respectively, and were $2.1 million and $3.7 million for the three and six months ended June 30, 2023, respectively, and were recorded in cost of revenue on the condensed consolidated statements of operations