REVENUE AND OTHER CONTRACTS WITH CUSTOMERS

6 Months Ended

Jun. 30, 2024

Revenue from Contract with Customer [Abstract]

REVENUE AND OTHER CONTRACTS WITH CUSTOMERS

(3) REVENUE AND OTHER CONTRACTS WITH CUSTOMERS

Revenue recognized for each distinct performance obligation as control is transferred to the customer. Revenue attributable to hardware products bundled with Software-as-a-Service (“SaaS”) offerings are recognized at the time control of the product transfers to the customer. The transaction price allocated to the SaaS offering is recognized ratably beginning when the customer is expected to activate their account and over a three-year period that the Company has estimated based on the expected replacement of the hardware.

Transaction Price Allocated to the Remaining Performance Obligations

The remaining performance obligations represent the transaction price allocated to performance obligations that are unsatisfied or partially unsatisfied as of the end of the reporting period. Unsatisfied and partially unsatisfied performance obligations consist of contract liabilities, in-transit orders with destination terms, and non-cancellable backlog. Non-cancellable backlog includes goods for which customer purchase orders have been accepted, that are scheduled or in the process of being scheduled for shipment, and that are not yet invoiced.

Contract costs

The Company recognizes the incremental costs of obtaining a contract with a customer if the Company expects the benefit of those costs to be longer than one year. The Company has determined that certain sales commissions meet the requirements to be capitalized, and the Company amortizes these costs on a consistent basis with the pattern of transfer of the goods and services in the contract. Total capitalized costs to obtain a contract were immaterial during the periods presented and are included in other current and long-term assets on our condensed consolidated balance sheets.

The Company applies a practical expedient to expense costs as incurred for costs to obtain a contract when the amortization period is one year or less. These costs include sales commissions on SaaS contracts with a contract period of one year or less as sales commissions on contract renewals are commensurate with those paid on the initial contract.

Contract Balances

The Company records accounts receivable when it has an unconditional right to the consideration. The Company did not have contract liabilities at June 30, 2024 and December 31, 2023.

Disaggregation of Revenue

The following table sets forth our revenues by distribution channel:

	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Retailers	$	-	$	6,566,682	$	638,904	$	16,848,031
Distributors		-		126,079		-		171,043
Other		-		501,996		989		927,467
	$	-	$	7,194,757	$	639,893	$	17,946,541

The following table sets forth our revenues by product:

	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Cable modems & gateways	$	-	$	6,887,777	$	638,804	$	17,461,832
Other networking products		-		233,145		1,089		324,776
SaaS		-		73,835		-		159,933
	$	-	$	7,194,757	$	639,893	$	17,946,541