Revenue Recognition - Topic 606

12 Months Ended

Dec. 31, 2020

REVENUE RECOGNITION - TOPIC 606

REVENUE RECOGNITION - TOPIC 606

NOTE 3 – REVENUE RECOGNITION

Performance Obligations 

Our revenue performance obligations are primarily satisfied at a point in time and limited revenue streams are satisfied over time as work progresses.

The following is a summary of our revenue performance obligations:

	For the Year Ended December 31,
	2020				2019
(In thousands)	Revenues		Percent of Revenues		Revenues		Percent of Revenues
Revenue recognized over time	$	1,715	2	%	$	2,029	3	%
Revenue recognized at a point in time		68,402	98	%		57,234	97	%
	$	70,117	100	%	$	59,263	100	%

See Note 13 for additional information regarding disaggregation of revenue.

Contract Balances 

Contract assets consist of unbilled amounts from sales where we recognize the revenue over time and the revenue recognized exceeds the amount billed to the customer at a point in time. Accounts and trade notes receivable are recorded when the right to payment becomes unconditional. Contract liabilities consist of payments received in advance of performance under the contract. Contract liabilities are recognized as revenue when we perform under the contract.

The following summarizes our contract assets and contract liabilities: 

(In thousands)	December 31, 2020		December 31, 2019
Contract assets, included in other current assets	$	2	$	2
Contract liabilities - advance customer payments	$	567	$	389
Contract liabilities - deferred warranty revenue	$	344	$	275

Changes in contract assets in 2020 and 2019 resulted from unbilled amounts under sensor product arrangements and longer duration 3D scanning service projects in which revenue is recognized over time. Changes in contract liabilities primarily resulted from reclassification of beginning contract liabilities to revenue as performance obligations were satisfied or from cash received in advance and not recognized as revenue. See Note 9 for changes in contractual obligations related to deferred warranty revenue. Unsatisfied performance obligations for deferred warranty revenue are generally expected to be recognized as revenue over the next one to three years. There were no impairment losses for contract assets in 2020 or 2019.

The following summarizes the amounts reclassified from beginning contract liabilities to revenue:

	Year Ended December 31,
(In thousands)	2020		2019
Amounts reclassified from beginning contract liabilities to revenue	$	171	$	334
Amounts reclassified from deferred warranty revenue	193		213
Total	$	364	$	547