Deferred Revenue, Income and Remaining Performance Obligations

3 Months Ended

Mar. 31, 2018

Deferred Revenue Disclosure [Abstract]

Deferred Revenue, Income and Remaining Performance Obligations

NOTE 10. DEFERRED REVENUE, INCOME AND REMAINING PERFORMANCE OBLIGATIONS

Deferred revenue consists of amounts received for products or services not yet delivered or earned. Deferred income consists of amounts received for commitments not yet fulfilled. If we anticipate that the revenue or income will not be earned within the following twelve months, the amount is reported as long-term deferred income. A summary of the balances as of March 31, 2018 and December 31, 2017 follows (in thousands):

	March 31,		December 31,
	2018		2017
Products and services not yet delivered	$	117	$	71
Arizona Commerce Authority grant	—		1,000
Deferred revenue and income	$	117	$	1,071

In January 2018, $1.0 million in milestone payments from the Arizona Commerce Authority was recognized as an offset to expense. We also recognized $21,000 of revenues that were included in the contract liabilities balances at the beginning of the period. No material amount of revenue recognized during the period was from performance obligations satisfied in prior periods.

Transaction Price Allocated to Remaining Performance Obligations

As of March 31, 2018, $737,000 of revenue is expected to be recognized from remaining performance obligations. This balance primarily relates to executed, extended-service contracts that begin as warranty periods expire. These contracts are typically four years and revenue is recognized on a straight-line basis over the contract term.

As a practical expedient, the Company elects not to disclose the value of unsatisfied performance obligations for (i) contracts with an expected length of one year or less and (ii) contracts for which we recognize revenue at the amount to which we have the right to invoice for services performed.