REVENUE

6 Months Ended

Jun. 30, 2023

Revenue from Contract with Customer [Abstract]

REVENUE

NOTE 11 — REVENUE

The following table reflects revenue recognized for the three and six months ended June 30, 2023 and 2022 in line with the timing of transfer of services:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2023		2022		2023		2022
Revenue from services delivered at a point in time	$	23,863	$	21,609	$	47,763	$	46,033
Revenue from services delivered over time		9,895		13,358		21,124		26,428
Total	$	33,758	$	34,967	$	68,887	$	72,461

Contract and Contract-Related Liabilities

The Company has four types of liabilities related to contracts with customers: (i) cash consideration received in advance from customers related to development services not yet performed or hardware deliveries not yet completed, (ii) incentive program obligations, which represents the deferred allocation of revenue relating to incentives in the online gaming operations, (iii) user balances, which are funds deposited by customers before gaming play occurs and (iv) unpaid winnings and wagers contributed to jackpots. Contract related liabilities are expected to be recognized as revenue within one year of being purchased, earned or deposited. Such liabilities are recorded in liabilities to users and other current liabilities in the condensed consolidated balance sheets.

GAN LIMITED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

(in thousands, except share and per share amounts)

The following table reflects contract liabilities arising from cash consideration received in advance from customers for the periods presented:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2023		2022		2023		2022
Contract liabilities from advance customer payments, beginning of the period	$	2,655	$	2,095	$	2,117	$	1,874
Contract liabilities from advance customer payments, end of the period (1)		2,607		1,421		2,607		1,421
Revenue recognized from amounts included in contract liabilities from advance customer payments at the beginning of the period		263		459		457		635

⁽¹⁾ Contract liabilities from advance customer payments, end of period consisted of $1,760 and $570 recorded in other current liabilities in the condensed consolidated balance sheets at June 30, 2023 and 2022, respectively and $847 and $851 recorded in other liabilities in the condensed consolidated balance sheet at June 30, 2023 and 2022, respectively.