Note 5 - Revenue From Contracts With Customers

9 Months Ended

Oct. 31, 2021

Notes to Financial Statements

Revenue from Contract with Customer [Text Block]

5. Revenue from Contracts with Customers

The following table presents revenue from contracts with customers disaggregated by product line and timing of revenue recognition:

	Three Months Ended October 31,				Nine Months Ended October 31,
	2021		2020		2021		2020
Revenue recognized at a point in time:	(in thousands)
Seamap	$	6,876	$	5,196	$	15,045	$	11,066
Klein		1,328		1,150		3,884		3,152
Total revenue recognized at a point in time	$	8,204	$	6,346	$	18,929	$	14,218
Revenue recognized over time:
Seamap	$	143	$	195	$	419	$	596
Total revenue recognized over time		143		195		419		596
Total revenue from contracts with customers	$	8,347	$	6,541	$	19,348	$	14,814

The revenue from products manufactured and sold by our Seamap and Klein businesses is generally recognized at a point in time, or when the customer takes possession of the product, based on the terms and conditions stipulated in our contracts with customers. Our Seamap business also provides Software Maintenance Agreements (“SMA”) to customers who have an active license for software embedded in Seamap products. The revenue from SMA’s is recognized over time, with the total value of the SMA amortized in equal monthly amounts over the life of the contract, which is typically twelve months.

The following table presents revenue from contracts with customers disaggregated by geography, based on shipping location of our customers:

	Three Months Ended October 31,				Nine Months Ended October 31,
	2021		2020		2021		2020
	(in thousands)
United States	$	967	$	282	$	1,545	$	2,068
Europe		3,491		2,001		9,593		4,981
Middle East & Africa		120		757		809		1,054
Asia-Pacific		3,667		3,342		6,560		5,841
Canada & Latin America		102		159		841		870
Total revenue from contracts with customers	$	8,347	$	6,541	$	19,348	$	14,814

As of October 31, 2021, and January 31, 2021, contract assets and liabilities consisted of the following:

	October 31, 2021		January 31, 2021
Contract Assets:	(in thousands)
Unbilled revenue - current	$	57	$	85
Total unbilled revenue	$	57	$	85
Contract Liabilities:
Deferred revenue & customer deposits - current	$	863	$	691
Total deferred revenue & customer deposits	$	863	$	691

Considering the products manufactured and sold by our Seamap and Klein businesses and the Company’s standard contract terms and conditions, we expect our contract assets and liabilities to turn over, on average, within a period of three to nine months.

Pursuant to our accounting policies and procedures related to revenue from contracts with customers, sales and transaction-based taxes are excluded from revenue. Also, we do not disclose the value of unsatisfied performance obligations for contracts with an original expected duration of one year or less. Additionally, we expense costs incurred to obtain contracts when incurred because the amortization period would have been one year or less. These costs are recorded in selling, general and administrative expenses.