REVENUES AND PRODUCT COSTS

12 Months Ended

Dec. 31, 2024

Revenue from Contract with Customer [Abstract]

REVENUES AND PRODUCT COSTS

2. REVENUES AND PRODUCT COSTS

Revenues consist of product sales and other revenues. Product sales include selling of BolaWrap products and accessories. Other revenues includes VR revenues, service, training and shipping revenues.

The table below details the activity in our contract liabilities during the year ended December 31, 2024.

	Customer			Deferred
	Deposits			Revenue
Balance at January 1, 2024	$	1,002		$	544
Additions, net		89			856
Transfer to revenue		(1,064	)		(895	)
Balance at December 31, 2024	$	27		$	505
Current portion	$	27		$	466
Long-term portion	$	-		$	39

As of December 31, 2024, the Company’s deferred revenues of $505 consisted of $76 related to BolaWrap extended warranties and services, $352 related to Intrensic extended warranties and services, $73 related to VR and $4 related to training.

As of December 31, 2023, the Company’s deferred revenues of $544 consisted of $139 related to BolaWrap extended warranties and services, $216 related to Intrensic extended warranties and services, $171 related to VR and $18 related to training.

The Company recognizes an asset if there are incremental costs of obtaining a contract with a customer such as commissions. These costs are ascribed to or allocated to the underlying performance obligations in the contract and amortized consistent with the recognition timing of the revenue for any such underlying performance obligations. The Company had no such assets as of December 31, 2024 and 2023. The Company will apply the practical expedient to expense any sales commissions related to performance obligations with an amortization of one year or less when incurred within selling, general and administrative expense.