Deferred Revenue and Remaining Performance Obligations

9 Months Ended

Sep. 30, 2019

Deferred Revenue Disclosure [Abstract]

Deferred Revenue and Remaining Performance Obligations

NOTE 9. DEFERRED REVENUE AND REMAINING PERFORMANCE OBLIGATIONS

Deferred revenue consists of amounts received for products or services not yet delivered or earned. Deferred revenue consists of amounts received for commitments not yet fulfilled. If we anticipate revenue will not be earned within the following twelve months, the amount is reported as other non-current liabilities. A summary of the balances as of September 30, 2019 and December 31, 2018 follows (in thousands):

	September 30,		December 31,
	2019		2018
Products and services not yet delivered	$	250	$	217

We recognized $0.2 million and $0.3 million of revenues that were included in the beginning contract liabilities balances during the three and nine months ended September 30, 2019, respectively. We recognized $30,000 and $65,000 of revenues that were included in the contract liabilities balances during the three and nine months ended September 30, 2018, respectively. 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 September 30, 2019, $2.5 million of revenue is expected to be recognized from remaining performance obligations. This balance primarily relates to executed service contracts that begin as warranty periods expire. These service contracts typically provide for four-year terms and revenue is recognized on a straight-line basis. The balance also includes product shipments for reagent rental, sales-type lease agreements. The agreements have between two and four year terms and revenue is recognized as product is shipped, typically on a straight-line basis.

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.