REVENUE

6 Months Ended

Jun. 30, 2022

Revenue from Contract with Customer [Abstract]

REVENUE

NOTE 8—REVENUE

The following table disaggregates the Company’s revenue for the six-month and three-month periods ended June 30, 2022 and 2021 (in thousands):

	Hardware		Monitoring		Total
Six months ended June 30, 2022:
PG Segment	$	1,002	$	1,823	$	2,825
CP Segment		414		133		547
Total Revenue	$	1,416	$	1,956	$	3,372

	Hardware		Monitoring		Total
Six months ended June 30, 2021:
PG Segment	$	942	$	1,895	$	2,837
CP Segment		349		130		479
Total Revenue	$	1,291	$	2,025	$	3,316

	Hardware		Monitoring		Total
Three months ended June 30, 2022:
PG Segment	$	479	$	901	$	1,380
CP Segment		176		65		241
Total Revenue	$	655	$	966	$	1,621

	Hardware		Monitoring		Total
Three months ended June 30, 2021:
PG Segment	$	425	$	954	$	1,379
CP Segment		169		63		232
Total Revenue	$	594	$	1,017	$	1,611

Deferred revenue activity for the six months ended June 30, 2022 can be seen in the table below (in thousands):

	Hardware			Monitoring			Total
Balance at December 31, 2021	$	3,268		$	2,125		$	5,393
Additions during the period		1,282			1,943			3,225
Recognized as revenue		(1,027	)		(1,956	)		(2,983	)
Balance at June 30, 2022	$	3,523		$	2,112		$	5,635
Amounts to be recognized as revenue in the twelve-month-period ending:
June 30, 2023	$	1,839		$	1,803		$	3,642
June 30, 2024		1,270			304			1,574
June 30, 2025 and thereafter		414			5			419
	$	3,523		$	2,112		$	5,635

Other revenue of $389,000, is related to accessories, repairs, and other miscellaneous charges that are recognized to revenue when sold and are not deferred.

Deferred charges relate only to the sale of equipment. Deferred charges activity for the six months ended June 30, 2022 can be seen in the table below (in thousands):

Balance at December 31, 2021	$	1,513
Additions, net of adjustments, during the period		601
Recognized as cost of sales		(484	)
Balance at June 30, 2022	$	1,630
Amounts to be recognized as cost of sales in the twelve-month-period ending:
June 30, 2023	$	858
June 30, 2024		581	*
June 30, 2025 and thereafter		191	*
	$	1,630

Other cost of goods sold (COGS) recognized of $227,000 is related to accessories, repairs, and other miscellaneous charges that are recognized to revenue when sold and are not deferred, in addition to $157,000 in monitoring COGS which is not deferred.

The following table provides a reconciliation of the Company’s sales commissions contract assets for the six-month period ended June 30, 2022 (in thousands):

	Hardware			Monitoring			Total
Balance at December 31, 2021	$	242		$	53		$	295
Additions during the period		94			20			114
Amortization of sales commissions		(71	)		(13	)		(84	)
Balance at June 30, 2022	$	265		$	60		$	325

The capitalized sales commissions are included in other current assets ($159,000) and other assets ($166,000) in the Company’s unaudited condensed consolidated balance sheets as of June 30, 2022. The capitalized sales commissions are included in other current assets ($138,000) and other assets ($157,000) in the Company’s consolidated balance sheets as of December 31, 2021.