Disaggregation of Revenue

9 Months Ended

Sep. 30, 2020

Disaggregation of Revenue

Disaggregation of Revenue

Note 3. Disaggregation of Revenue

Disaggregation of revenue

In the following table, revenue is disaggregated by major products/service lines, and timing of revenue recognition:

	For the Three Months Ended				For the Nine Months Ended
	September 30,				September 30,
	2020		2019		2020		2019
Major products/service lines
Licensing fees - royalty revenue	$	62,300	$	174,124	$	214,942	$	439,971
Total Revenue	$	62,300	$	174,124	$	214,942	$	439,971
Timing of revenue recognition
Products transferred at a point in time	$		$	—	$		$	—
Products and services transferred over time		62,300		174,124		214,942		439,971
	$	62,300	$	174,124	$	214,942	$	439,971

Contract balances

The following table provides information about receivables and liabilities from contracts with customers:

	September 30,		December 31,
	2020		2019
Assets
Trade receivables, net	$	61,305	$	44,913
Liabilities
Contract liabilities	$	208,200	$	180,200

	September 30,		December 31,
Contract liabilities	2020		2019
Opening	$	180,200	$	112,500
Addditions		28,000		120,200
Transfer to revenue		—		52,500
Ending	$	208,200	$	180,200

Contract receivables are recorded at the invoiced amount and do not bear interest. Credit is extended based on the evaluation of a customer’s financial condition and collateral is not required.

The contract liabilities primarily relate to deferred revenue. Amounts billed in advance of performance obligations being satisfied are booked as deferred revenue.

Practical Expedients and Exemptions

The Company did not apply any practical expedients during the adoption of ASC 606.