Revenue Recognition Revenue Recognition

9 Months Ended

Sep. 30, 2022

Revenue from Contract with Customer [Abstract]

Revenue Recognition

Note 3. Revenue Recognition

We generate all of our revenue through contracts with customers. Revenue is either recognized over time as the service is provided, or at a point in time when the product is transferred to the customer, depending on the contract type. Our performance obligations typically have an original duration of one year or less.

Disaggregation of Revenue

The following table presents our disaggregated revenue by source and segment (in thousands):

	Quarter Ended September 30, 2022						Nine Months Ended September 30, 2022
	Consumer Media		Mobile Services		Games		Consumer Media		Mobile Services		Games
Business Line
Software License	$	248	$	2,005	$	—	$	2,628	$	4,415	$	—
Subscription Services	682		3,221		2,052		2,134		10,908		6,387
Product Sales	280		—		2,090		587		—		6,453
Advertising and Other	205		—		925		676		—		2,652
Total	$	1,415	$	5,226	$	5,067	$	6,025	$	15,323	$	15,492
	Quarter Ended September 30, 2021						Nine Months Ended September 30, 2021
	Consumer Media		Mobile Services		Games		Consumer Media		Mobile Services		Games
Business Line
Software License	$	1,506	$	1,459	$	—	$	4,222	$	4,781	$	—
Subscription Services	779		4,313		2,361		2,390		13,327		7,320
Product Sales	270		—		2,612		1,038		—		8,605
Advertising and Other	208		—		824		483		—		2,615
Total	$	2,763	$	5,772	$	5,797	$	8,133	$	18,108	$	18,540

The following table presents our disaggregated revenue by sales channel (in thousands):

	Quarter Ended September 30, 2022						Nine Months Ended September 30, 2022
	Consumer Media		Mobile Services		Games		Consumer Media		Mobile Services		Games
Sales Channel
Business to Business	$	453	$	5,167	$	1,191	$	3,304	$	15,128	$	3,199
Direct to Consumer	962		59		3,876		2,721		195		12,293
Total	$	1,415	$	5,226	$	5,067	$	6,025	$	15,323	$	15,492
	Quarter Ended September 30, 2021						Nine Months Ended September 30, 2021
	Consumer Media		Mobile Services		Games		Consumer Media		Mobile Services		Games
Sales Channel
Business to Business	$	1,714	$	5,689	$	947	$	4,705	$	17,845	$	2,985
Direct to Consumer	1,049		83		4,850		3,428		263		15,555
Total	$	2,763	$	5,772	$	5,797	$	8,133	$	18,108	$	18,540

Contract Balances

The timing of revenue recognition may differ from the timing of invoicing to our customers. We record accounts receivable when the right to consideration becomes unconditional, except for the passage of time. For certain contracts, payment schedules may exceed one year; for those contracts we recognize a long-term receivable. As of September 30, 2022 and December 31, 2021, our balance of long-term accounts receivable was $0.2 million and $0.2 million, respectively, and is included in other long-term assets on our condensed consolidated balance sheets. The increase in this balance from December 31, 2021 to September 30, 2022 is primarily due to the timing of expected cash receipts. During the quarter and nine months ended September 30, 2022, we recorded no impairments to our contract assets.

We record deferred revenue when cash payments are received in advance of our completion of the underlying performance obligation. As of September 30, 2022 and December 31, 2021, we had a deferred revenue balance of $2.3 million and $2.8 million, respectively, primarily due to deferred revenue associated with monthly subscriptions.

Judgments and Estimates

Our contracts with customers can include obligations to provide multiple services to a customer. Determining whether products and services are considered distinct performance obligations that should be accounted for separately versus together can require significant judgment. For example, certain contracts include the sale of software licenses or subscriptions as well as services to be delivered over time. Judgment is also required to determine the standalone selling price ("SSP") for each distinct performance obligation in these arrangements. We allocate revenue to each performance obligation based on the relative SSP. We determine SSP for performance obligations based on overall pricing objectives, which take into consideration observable prices and market conditions.

For certain of our contracts, we recognize revenues using the sales- and usage-based exception as defined in the licensing guidance of Topic 606. For these contracts, we typically receive reporting of actual usage a quarter in arrears, and as such, we are required to estimate the current quarter's usage. To make these estimates, we utilize historical reporting information, as well as industry trends and interim reporting to quantify total quarterly usage. As actual usage information is received, we record a true-up in the following quarter to reflect any variance from our estimate. In the nine months ended September 30, 2022 and 2021, we did not record any material true-ups to our consolidated financial statements.

Practical Expedients

For those contracts for which we recognize revenue at the amount to which we have the right to invoice for service performed, we do not disclose the value of any unsatisfied performance obligations. We also do not disclose the remaining unsatisfied performance obligations which have an original duration of one year or less. Additionally, we immediately expense sales commissions when incurred as the amortization period would have been less than one year. These costs are recorded within sales and marketing expense.