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REVENUE
3 Months Ended
Mar. 31, 2023
Revenue from Contract with Customer [Abstract]  
REVENUE

NOTE 10—REVENUE

 

The following table disaggregates the Company’s revenue for the three-month periods ended March 31, 2023 and 2022 (in thousands):

 

   Hardware   Monitoring   Total 
Three months ended March 31, 2023:               
PG Segment  $549   $958   $1,507 
CP Segment   176    66    242 
Total Revenue  $725   $1,024   $1,749 

 

   Hardware   Monitoring   Total 
Three months ended March 31, 2022:               
PG Segment  $523   $922   $1,445 
CP Segment   238    68    306 
Total Revenue  $761   $990   $1,751 

 

Deferred revenue activity for the three months ended March 31, 2023 can be seen in the table below (in thousands):

 

   Hardware   Monitoring   Total 
Balance at December 31, 2022  $3,751   $2,420   $6,171 
Additions during the period   548    1,106    1,654 
Recognized as revenue   (585)   (1,024)   (1,609)
Balance at March 31, 2023  $3,714   $2,502   $6,216 
                
Amounts to be recognized as revenue in the twelve-month-period ending:               
March 31, 2024  $2,006   $2,041   $4,047 
March 31, 2025   1,303    459    1,762 
March 31, 2026 and thereafter   405    2    407 
   $3,714   $2,502   $6,216 

 

Other revenue of $140,000 is related to accessories, repairs, and other miscellaneous charges that are recognized to revenue when sold and are not deferred.

 

Deferred COGS relate only to the sale of equipment. Deferred COGS activity for the three months ended March 31, 2023 can be seen in the table below (in thousands):

 

      
Balance at December 31, 2022  $1,694 
Additions, net of adjustments, during the period   231 
Recognized as cost of sales   (268)
Balance at March 31, 2023  $1,657 
      
Amounts to be recognized as COGS in the twelve-month-period ending:     
March 31, 2024  $898 
March 31, 2025   583 
March 31, 2026 and thereafter   176 
   $1,657 

 

 

Data costs paid to AT&T and the COGS related to sales of upgrade kits, accessories and repairs of $165,000 in the aggregate are expensed as incurred and are not deferred.

 

The following table provides a reconciliation of the Company’s sales commissions contract assets for the three-month period ended March 31, 2023 (in thousands):

 

   Hardware   Monitoring   Total 
Balance at December 31, 2022  $319   $80   $399 
Additions during the period   44    13    57 
Amortization of sales commissions   (47)   (8)   (55)
Balance at March 31, 2023  $316   $85   $401 

 

The capitalized sales commissions are included in other current assets ($203,000) and other assets ($198,000) in the Company’s unaudited condensed consolidated balance sheet at March 31, 2023. The capitalized sales commissions are included in other current assets ($196,000) and other assets ($203,000) in the Company’s unaudited condensed consolidated balance sheet at December 31, 2022.

 

Amounts to be recognized as sales commission expense in the twelve-month-period ending:

SCHEDULE OF SALES COMMISSIONS EXPENSE

      
March 31, 2024  $203 
March 31, 2025   137 
March 31, 2026 and thereafter   61 
   $401 

 

The contract assets of deferred COGS and deferred sales commissions are subject to review under ASU 2016-13, see Notes 2 and 4, however, no credit losses on contract assets are expected based on the Company’s implementation of ASU 2016-13.