Note 5 - Revenue From Contracts With Customers

6 Months Ended

Jul. 31, 2022

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 July 31,				Six Months Ended July 31,
	2022		2021		2022		2021
Revenue recognized at a point in time:	(in thousands)
Seamap	$	4,288	$	5,256	$	12,281	$	8,169
Klein		3,688		1,406		4,696		2,556
Total revenue recognized at a point in time	$	7,976	$	6,662	$	16,977	$	10,725
Revenue recognized over time:
Seamap	$	737	$	145	$	823	$	276
Klein	$	—	$	—	$	—	$	—
Total revenue recognized over time		737		145		823		276
Total revenue from contracts with customers	$	8,713	$	6,807	$	17,800	$	11,001

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. However, from time to time our Seamap and Klein businesses provide repair and maintenance services, or perform upgrades, on customer owned equipment in which case revenue is recognized over time. In addition, our Seamap business provides annual Software Maintenance Agreements (“SMA”) to customers who have an active license for software embedded in Seamap products. The revenue from SMA is recognized over time, with the total value of the SMA recognized in equal monthly amounts over the life of the contract.

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

	Three Months Ended July 31,				Six Months Ended July 31,
	2022		2021		2022		2021
	(in thousands)
United States	$	2,333	$	219	$	4,586	$	578
Europe		4,082		3,520		8,694		6,102
Middle East & Africa		142		675		180		689
Asia-Pacific		2,042		2,188		4,226		2,893
Canada & Latin America		114		205		114		739
Total revenue from contracts with customers	$	8,713	$	6,807	$	17,800	$	11,001

As of July 31, 2022, and January 31, 2022, contract assets and liabilities consisted of the following:

	July 31, 2022		January 31, 2022
Contract Assets:	(in thousands)
Unbilled revenue - current	$	43	$	28
Total unbilled revenue	$	43	$	28
Contract Liabilities:
Deferred revenue & customer deposits - current	$	2,665	$	2,569
Total deferred revenue & customer deposits	$	2,665	$	2,569

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.

With respect to the disclosures above, sales and transaction-based taxes are excluded from revenue, and we do not disclose the value of unsatisfied performance obligations for contracts with an original expected duration of one year or less. Also, we expense costs incurred to obtain contracts because the amortization period would be one year or less. These costs are recorded in selling, general and administrative expenses.