Revenue from Contracts with Customers (ASC 606)

12 Months Ended

Dec. 31, 2022

Revenue from Contract with Customer [Abstract]

Revenue from Contracts with Customers (ASC 606)

Revenue from Contracts with Customers (ASC 606)

In accordance with ASC 606, revenue is recognized when a customer obtains control of promised products and services. The amount of revenue recognized reflects the consideration which the Company expects to be entitled to receive in exchange for these products and services.

Disaggregation of Revenue

The following table summarizes net sales from contracts with customers for the years ended December 31, 2022 and 2021:

	Year Ended December 31,
	2022		2021
Product, transferred at point in time	$	24,482	$	27,490
Product, transferred over time	2,488		2,522
Service	111,908		103,899
Total net sales	$	138,878	$	133,911

Revenue recognized during the years ended December 31, 2022 and 2021 from amounts included in contract liabilities at the beginning of the fiscal year was approximately $2,177 and $2,281, respectively.

For product sales, the delivery of the Company’s performance obligations are generally transferred to the customer, and associated revenue is recognized, at a point in time, with the exception of certain VSAT contracts which are transferred to customers over time. For service sales, the delivery of the Company’s performance obligations are transferred to the customer, and associated revenue is recognized, over time.

Business and Credit Concentrations

No single customer accounted for 10% or more of consolidated net sales for the years ended December 31, 2022 or 2021. Two customers accounted for approximately 16% and 12% of accounts receivable at December 31, 2022. Two customers accounted for approximately 16% and 14% of accounts receivable at December 31, 2021. One customer accounted for 66% and 54% of long-term accounts receivable included in other non-current assets on the consolidated balance sheets related to sales-type leases at December 31, 2022 and December 31, 2021, respectively.

Customer Contract Balances

The following table provides the balance sheet location and amounts of contract assets, or unbilled accounts receivable, and contract liabilities, or deferred revenue, from contracts with customers as of December 31, 2022 and 2021:

		Year Ended December 31,
Contract Balance Type	Balance Sheet Location	2022		2021
Current portion of deferred costs	Current contract assets	$	1,243	$	1,230
Non-current portion of deferred costs	Non-current contract assets	3,033		3,104
Current portion of deferred revenues	Contract liabilities*	1,743		1,720
Non-current portion of deferred revenues	Long-term contract liabilities	4,315		4,466

*Management notes that the remaining “Contract liabilities” balance not included in the above table (as of December 31, 2022 and 2021 is $1,365 and $2,058, respectively) relates to deferred income unaffiliated with the Company’s primary revenue streams. These values are therefore excluded from the contract assets and contract liabilities from contracts with customers.

There were no material changes to contract asset balances for the year ended December 31, 2022 as a result of changes in estimates or impairments. The change in the contract liability balance from December 31, 2021 to December 31, 2022 was primarily due to recognition of revenues in the current year related to prior year upfront support billings.