Revenue Concentration

12 Months Ended

Sep. 30, 2022

Risks and Uncertainties [Abstract]

REVENUE CONCENTRATION

12. REVENUE CONCENTRATION

Revenue Concentration

For the twelve months ended September 30, 2022, the Company derived revenue of $25.0 million from one customer, with such customer accounting for 17% of the Company’s total revenue. For the twelve months ended September 30, 2021, the Company derived revenue of $20.2 million from one customer, with such customer accounting for 17% of the Company's total revenue. For the twelve months ended September 30, 2020, the Company derived revenue of $15.8 million from one customer, with such customer accounting for 16% of the Company’s total revenue. The corresponding accounts receivable balances of customers from which revenues were in excess of 10% of total revenue were $7.5 million, $3.4 million, and $4.5 million at September 30, 2022, 2021, and 2020, respectively.

The Company’s revenue is derived from the sale of products covered by the Company’s patented technologies to end-users of licenses and to channel partners, including systems integrators and resellers. Contractual arrangements with channel partners do not obligate the Company’s channel partners to order, purchase or distribute any fixed or minimum quantities of the Company’s products. In most cases, the channel partners purchase the license from the Company after they receive an order from an end-user. The channel partners receive orders from various individual end-users; therefore, the sale of a license to a channel partner may represent sales to multiple end-users. End-users can purchase the Company’s products through more than one channel partner.

Revenues can fluctuate based on the timing of license renewals by channel partners. When a channel partner purchases or renews a license, the Company receives a license fee in consideration for the grant of a license to sell the Company’s products and there are no future payment obligations related to such agreement; therefore, the license fee the Company receives with respect to a particular license renewal in one period does not have a correlation with revenue in future periods. During the last several quarters, sales of licenses to one or more channel partners have comprised a significant part of the Company’s revenue. This is attributable to the timing of renewals or purchases of licenses and does not represent a dependence on any single channel partner. The Company believes that it is not dependent upon any single channel partner, even those from which revenues were in excess of 10% of the Company’s total revenue in a specific reporting period, and that the loss or termination of the Company’s relationship with any such channel partner would not have a material adverse effect on the Company’s future operations because either the Company or another channel partner could sell the Company’s products to the end-user that had purchased from the channel partner the Company lost.

International sales accounted for approximately 27%, 26%, and 24% of the Company’s total revenue for the twelve months ended September 30, 2022, 2021, and 2020, respectively. From a geographic perspective, approximately 69% and 24% of the Company’s total long-term assets as of September 30, 2022 and 2021, respectively, are associated with the Company’s international subsidiaries. From a geographic perspective, approximately 19% and 6% of the Company’s total long-term assets excluding goodwill and other intangible assets as of September 30, 2022 and 2021, respectively, are associated with the Company’s international subsidiaries.