Deferred Revenue and Customer Advances

9 Months Ended

Sep. 30, 2013

Revenue Recognition [Abstract]

Deferred Revenue and Customer Advances

8. Deferred Revenue and Customer Advances

Deferred revenue and customer advances are primarily related to the Company’s mid-market product line where energy suppliers pay all or a portion of the total commission due from the completed procurements before the Company has met all of the necessary criteria to recognize revenue. As a result, cash received from commission payments are deferred until actual usage data is received or contract end. Deferred revenue and customer advances expected to be recognized as revenue by year are approximately as follows as of September 30, 2013:

	Amount
Remainder of 2013	$	515,000
2014		3,087,000
2015		2,074,000
2016		1,299,000
2017		265,000
2018 and thereafter		165,000
Total deferred revenue and customer advances	$	7,405,000

The following table provides a rollforward of deferred revenue and customer advances:

	Amount
Balance at January 1, 2013	$	5,309,000
Cash received		3,623,000
Revenue recognized		(1,527,000	)
Balance at September 30, 2013	$	7,405,000