Revenue Recognition

6 Months Ended

Jun. 30, 2023

Revenue from Contract with Customer [Abstract]

Revenue Recognition

Revenue Recognition

Performance Obligations Outstanding

The Company's performance obligations outstanding represent the transaction price of firm, non-cancellable orders, with expected delivery dates to customers after June 30, 2023 and December 31, 2022, respectively, for work that has not yet been performed. The aggregate incomplete performance obligations attributable to each of the Company's reporting segments is as follows:

	June 30, 2023				December 31, 2022
	Current under one year		Non-current over one year		Current under one year		Non-current over one year
Restaurant/Retail	$	9,795	$	4,359	$	8,459	$	5,125
Government	—		—		—		—
Total	$	9,795	$	4,359	$	8,459	$	5,125

Deferred revenue is recorded when cash payments are received or due in advance of revenue recognition from subscription services and professional services. The timing of revenue recognition may differ from when customers are invoiced. The changes in deferred revenue, inclusive of both current and long-term, are as follows:

(in thousands)	2023		2022
Beginning balance - January 1	$	13,584	$	20,046
Recognition of deferred revenue	(14,112)		(19,200)
Deferral of revenue	14,682		17,649
Ending balance - June 30	$	14,154	$	18,495

The above table excludes customer deposits of $1.6 million and $1.6 million as of the six months ended June 30, 2023 and 2022, respectively. All deferred revenue relates to subscription services and professional services. These balances are recognized on a straight-line basis over the life of the contract, with the majority of the balance being recognized within the next twelve months.

In the Restaurant/Retail segment most performance obligations relate to subscription service and professional service contracts, approximately 69% of which the Company expects to fulfill within 12 months of June 30, 2023. Most performance obligations greater than one year relate to professional service contracts that the Company expects to fulfill within 36 months of June 30, 2023. The Company expects to fulfill 100% of subscription service and professional service contracts within 60 months of June 30, 2023. At June 30, 2023 and December 31, 2022, transaction prices allocated to future performance obligations were $14.2 million and $13.6 million, respectively.

During the three months ended June 30, 2023 and 2022, the Company recognized revenue included in deferred revenue at the beginning of each respective period of $2.9 million and $5.0 million. During the six months ended June 30, 2023 and 2022, the Company recognized revenue included in deferred revenue at the beginning of each respective period of $6.0 million and $9.5 million.

In the Government segment, the value of existing contracts at June 30, 2023, net of amounts relating to work performed to that date, was approximately $297.0 million, of which $96.6 million was funded, and at December 31, 2022, the value of existing contracts, net of amounts relating to work performed to that date, was approximately $333.9 million, of which $86.5 million was funded. The value of existing contracts in the Government segment, net of amounts relating to work performed at June 30, 2023, is expected to be recognized as revenue over time as follows:

(in thousands)
Next 12 months	$	156,049
Months 13-24	98,952
Months 25-36	28,760
Thereafter	13,280
Total	$	297,041

Disaggregated Revenue

The Company disaggregates revenue from contracts with customers by major product line for each of its reporting segments because the Company believes it best depicts how the nature, amount, timing and uncertainty of revenue and cash flows are affected by contract terms and economic factors.

Disaggregated revenue is as follows:

	Three Months Ended June 30, 2023
(in thousands)	Restaurant/Retail point in time		Restaurant/Retail over time		Government point in time		Government over time
Hardware	$	26,390	$	—	$	—	$	—
Subscription service	—		30,372		—		—
Professional service	5,709		7,058		—		—
Mission systems	—		—		—		9,218
Intelligence, surveillance, and reconnaissance solutions	—		—		—		21,510
Commercial software	—		—		129		158
Total	$	32,099	$	37,430	$	129	$	30,886

	Three Months Ended June 30, 2022
(in thousands)	Restaurant/Retail point in time		Restaurant/Retail over time		Government point in time		Government over time
Hardware	$	28,390	$	—	$	—	$	—
Subscription service	—		23,150		—		—
Professional service	4,511		8,120		—		—
Mission systems	—		—		—		11,747
Intelligence, surveillance, and reconnaissance solutions	—		—		—		8,883
Commercial software	—		—		129		163
Total	$	32,901	$	31,270	$	129	$	20,793

	Six Months Ended June 30, 2023
	Restaurant/Retail point in time		Restaurant/Retail over time		Government point in time		Government over time
Hardware	$	53,167	$	—	$	—	$	—
Subscription service	—		58,337		—		—
Professional service	12,195		14,414		—		—
Mission systems	—		—		—		18,601
Intelligence, surveillance, and reconnaissance solutions	—		—		—		43,726
Commercial software	—		—		210		331
Total	$	65,362	$	72,751	$	210	$	62,658

	Six Months Ended June 30, 2022
	Restaurant/Retail point in time		Restaurant/Retail over time		Government point in time		Government over time
Hardware	$	53,477	$	—	$	—	$	—
Subscription service	—		44,421		—		—
Professional service	8,855		16,264		—		—
Mission systems	—		—		—		24,037
Intelligence, surveillance, and reconnaissance solutions	—		—		—		17,798
Commercial software	—		—		212		314
Total	$	62,332	$	60,685	$	212	$	42,149