3. REVENUE RECOGNITION (Tables)

9 Months Ended

Sep. 30, 2022

Revenue from Contract with Customer [Abstract]

Disaggregation of Revenue

The following table provides information about disaggregated revenue by timing of revenue recognition (in thousands):

		Three Months ended September 30, 2022
				License and
		Product		royalty		Contract
		revenue		revenue		revenue		Total
Timing of revenue recognition:
Products transferred at a point in time	$	-	$	-	$	-	$	-
Product and services transferred over time		-		-		-		-
Total	$	-	$	-	$	-	$	-

		Nine Months Ended September 30, 2022
				License and
		Product		royalty		Contract
		revenue		revenue		revenue		Total
Timing of revenue recognition:
Products transferred at a point in time	$	-	$	664	$	-	$	664
Product and services transferred over time		-		-		-		-
Total	$	-	$	664	$	-	$	664

		Three Months ended September 30, 2021
				License and
		Product		royalty		Contract
		revenue		revenue		revenue		Total
Timing of revenue recognition:
Products transferred at a point in time	$	-	$	718	$	-	$	718
Product and services transferred over time		-		-		-		-
Total	$	-	$	718	$	-	$	718

		Nine Months Ended September 30, 2021
				License and
		Product		royalty		Contract
		revenue		revenue		revenue		Total
Timing of revenue recognition:
Products transferred at a point in time	$	-	$	1,943	$	-	$	1,943
Product and services transferred over time		-		-		-		-
Total	$	-	$	1,943	$	-	$	1,943

Significant Changes in Contract Assets and Contract Liabilities

Significant changes in the contract assets and the contract liabilities balances during the period are as follows (in thousands, except percentages):

		September 30,		December 31,
		2022		2021		$ Change	% Change
Contract assets	$	-	$	-	$	-	-
Contract liabilities		(4,601)		(5,265)		664	(12.6)
Net contract assets (liabilities)	$	(4,601)	$	(5,265)	$	664	(12.6)

In April 2017, we signed a contract with Microsoft Corporation to develop an LBS display system. Under the agreement, we received an upfront payment of $10.0 million. As of December 31, 2021, we had applied $4.7 million against the contract liability. During the three and nine months ended September 30, 2022, we applied an additional $0 and $664,000, respectively, against the contract liability with this customer.