Net Sales

6 Months Ended

Jun. 30, 2022

Net Sales.

Net Sales

2. Net Sales

The Company disaggregates its net sales by major source as follows:

	Three Months Ended June 30, 2022
	Products		Services		Total
Debit and Credit	$	69,031	$	25,150	$	94,181
Prepaid Debit		—		19,214		19,214
Intersegment eliminations		(86)		(1)		(87)
Total	$	68,945	$	44,363	$	113,308
	Six Months Ended June 30, 2022
	Products		Services		Total
Debit and Credit	$	137,379	$	48,817	$	186,196
Prepaid Debit		—		38,675		38,675
Intersegment eliminations		(118)		(21)		(139)
Total	$	137,261	$	87,471	$	224,732
	Three Months Ended June 30, 2021
	Products		Services		Total
Debit and Credit	$	47,180	$	25,680	$	72,860
Prepaid Debit		—		20,383		20,383
Intersegment eliminations		(24)		—		(24)
Total	$	47,156	$	46,063	$	93,219
	Six Months Ended June 30, 2021
	Products		Services		Total
Debit and Credit	$	94,359		48,318	$	142,677
Prepaid Debit		—		39,841		39,841
Intersegment eliminations		(190)		(17)		(207)
Total	$	94,169	$	88,142	$	182,311

Products Net Sales

“Products” net sales are recognized when obligations under the terms of a contract with a customer are satisfied. In most instances, this occurs over time as cards are produced for specific customers and have no alternative use and the Company has an enforceable right to payment for work performed. For work performed but not completed and unbilled, the Company estimates revenue by taking actual costs incurred and applying historical margins for similar types of contracts. Items included in “Products” net sales are produced Financial Payment Cards, including contact-EMV^®, contactless dual-interface EMV, contactless and magnetic stripe cards, CPI’s eco-focused solutions, including Second Wave^® and Earthwise^TM cards made with upcycled plastic, metal cards, private label credit cards and retail gift cards. Card@Once^® printers and consumables are also included in “Products” net sales, and their associated revenues are recognized at the time of shipping. The Company includes gross shipping and handling revenue in net sales, and shipping and handling costs in cost of sales.

EMV^® is a registered trademark in the U.S. and other countries and an unregistered trademark elsewhere. The EMV trademark is owned by EMV Co, LLC.

Services Net Sales

Net sales are recognized for “Services” as the services are performed. Items included in “Services” net sales include the personalization and fulfillment of Financial Payment Cards, providing tamper-evident secure packaging and fulfillment services to Prepaid Debit Card program managers, and software as a service personalization of instant issuance debit cards. As applicable, for work performed but not completed and unbilled, the Company estimates revenue by taking actual costs incurred and applying historical margins for similar types of contracts.

Customer Contracts

The Company often enters into Master Services Agreements (“MSAs”) with its customers. Generally, enforceable rights and obligations for goods and services occur only when a customer places a purchase order or statement of work to obtain goods or services under an MSA. The contract term as defined by ASC 606, Revenue from Contracts with Customers, is the length of time it takes to deliver the goods or services promised under the purchase order or statement of work. As such, the Company's contracts are generally short term in nature.