Note 8 - Revenue

12 Months Ended

Sep. 30, 2022

Notes to Financial Statements

Revenue from Contract with Customer [Text Block]

8. Revenue

Disaggregation of Revenues

The following table summarizes revenues from contracts with customers for the years ended September 30, 2022 and 2021, respectively, (in thousands):

	Fiscal Year Ended September 30, 2022
	SOFO		SFI		MSKK		Eliminations			Total
Revenue:
Hardware	$	5,238	$	409	$	296	$	(526	)	$	5,417
Software		2,062		399		407		(387	)		2,481
Shipping		227		10		—		—			237
Product and other total		7,528		818		703		(913	)		8,135
Support		4,948		502		1,659		(699	)		6,410
Hosting		5,446		879		1,087		(394	)		7,018
Events		3,146		50		1,268		—			4,464
Installs and training		714		906		153		(334	)		1,439
Services total		14,253		2,337		4,167		(1,427	)		19,331
Total revenue	$	21,781	$	3,155	$	4,870	$	(2,340	)	$	27,466

	Fiscal Year Ended September 30, 2021
	SOFO		SFI		MSKK		Eliminations			Total
Revenue:
Hardware	$	5,759	$	607	$	1,423	$	(984	)	$	6,806
Software		2,663		458		863		(396	)		3,588
Shipping		74		5		-		-			79
Product and other total		8,496		1,070		2,286		(1,380	)		10,473
Support		6,588		631		924		(844	)		7,298
Hosting		5,786		1,014		1,954		(458	)		8,296
Events		3,982		99		2,310		-			6,391
Installs and training		809		268		1,632		-			2,709
Services total		17,165		2,012		6,820		(1,302	)		24,694
Total revenue	$	25,661	$	3,082	$	9,106	$	(2,682	)	$	35,167

Transaction price allocated to future performance obligations

As of September 30, 2022, the aggregate amount of the transaction price that is allocated to our future performance obligations was approximately $3.3 million in the next three months compared to $3.5 million last year, $8.6 million in the next twelve months compared to $9.5 million last year, and the remaining $1.1 million thereafter compared to $1.6 million last year.

Disclosures related to our contracts with customers

Timing may differ between the satisfaction of performance obligations and the invoicing and collection of amounts related to our contracts with customers. We record assets for amounts related to performance obligations that are satisfied but not yet billed and/or collected. Liabilities are recorded for amounts that are collected in advance of the satisfaction of performance obligations. These liabilities are classified as current and non-current unearned revenue.

Unearned revenues

Unearned revenues represent our obligation to transfer products or services to our client for which we have received consideration, or an amount of consideration is due, from the client. During the years ended September 30, 2022, revenues recognized related to the amount included in the unearned revenues balance at the beginning of the period was $9.4 million compared to $10.5 million at September 30, 2021.

Assets recognized from the costs to obtain our contracts with customers

We recognize an asset for the incremental costs of obtaining a contract with a customer. We amortize these deferred costs proportionate with related revenues over the period of the contract. During the years ended September 30, 2022, amortization expense recognized related to the amount included in the capitalized commissions at the beginning of the period was $382 thousand compared to $462 thousand at September 30, 2021.