Note 6 - Revenue From Contracts With Customers

6 Months Ended

Jul. 31, 2023

Notes to Financial Statements

Revenue from Contract with Customer [Text Block]

6. Revenue from Contracts with Customers

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

	Three Months Ended July 31,				Six Months Ended July 31,
	2023		2022		2023		2022
Revenue recognized at a point in time:	(in thousands)
Seamap	$	7,103	$	4,288	$	17,508	$	12,281
Klein		1,180		3,688		2,652		4,696
Total revenue recognized at a point in time	$	8,283	$	7,976	$	20,160	$	16,977
Revenue recognized over time:
Seamap	$	458	$	737	$	650	$	823
Klein	$	9	$	—	$	526	$	—
Total revenue recognized over time		467		737		1,176		823
Total revenue from contracts with customers	$	8,750	$	8,713	$	21,336	$	17,800

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 the shipping location of our customers:

	Three Months Ended July 31,				Six Months Ended July 31,
	2023		2022		2023		2022
	(in thousands)
United States	$	378	$	2,333	$	1,720	$	4,586
Europe		2,965		4,082		10,000		8,694
Asia-Pacific		4,700		2,042		8,653		4,226
Other		707		256		963		294
Total revenue from contracts with customers	$	8,750	$	8,713	$	21,336	$	17,800

As of July 31, 2023, and January 31, 2023, contract assets and liabilities consisted of the following:

	July 31, 2023		January 31, 2023
Contract Assets:	(in thousands)
Unbilled revenue - current	$	33	$	2
Total unbilled revenue	$	33	$	2
Contract Liabilities:
Deferred revenue & customer deposits - current	$	1,670	$	571
Total deferred revenue & customer deposits	$	1,670	$	571

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.