Medical market revenue recognition- Customer orders from the medical market consist of a specified number of assembled and customized parts that the customer further integrates into their production process to produce market ready products. Customer orders do not include additional follow-on goods or services. Each order is for a series of distinct units that comprise a single performance obligation.

With the exception of prompt payment discounts, the transaction price for medical market products is the invoiced amount. Variable consideration in the form of refunds, credits, rebates, price concessions, pricing incentives or other items impacting transaction price are not present.

All of the Company’s products manufactured for the medical market are designed to each customer’s specifications, do not have an alternative use and cannot be sold or redirected by the Company to others. The Company considers contractual arrangements, laws and legal precedent in determining enforceable right. The Company has an enforceable right to payment for any finished or in-process units, including a reasonable margin, if the customer terminates the contract for reasons other than the Company’s failure to perform as promised within our medical diabetes market and a select customer within our other medical market. For contractual arrangements in which an enforceable right exists, control of these units is deemed to transfer to the customer over time during the manufacturing process, using the same measure of progress toward satisfying the promise to deliver the units to the customer. Consequently, the transaction price is recognized as revenue over time for contractual arrangements with an enforceable right, based on actual costs incurred in the manufacturing process to date relative to total expected costs to produce all ordered units. The transaction price for contractual arrangements without an enforceable right to payment for any finished or in-process units including a reasonable margin is recognized as revenue at a point in time.

Medical market products are invoiced when shipped and paid within normal commercial terms. The Company records a contract asset for revenue recognized over time in the production process for customized products that have not been shipped or invoiced to the customer.

Revenues recognized from our recently acquired subsidiary, Emerald, have been classified within Other Medical.

The following tables set forth, for the periods indicated, timing of revenue recognition by market:


Timing of revenue recognition for the three months ended June 30, 2020:
		Products and services transferred at point in time		Products and services transferred over time		Total
Medical:
Diabetes	$	-	$	13,521	$	13,521
Other Medical		2,995		1,602		4,597
Hearing Health:
Value Based DTEC		1,387		-		1,387
Value Based ITEC		1,365		-		1,365
Legacy OEM		1,721		-		1,721
Professional Audio Communications:		1,011		-		1,011
Total Revenue, net	$	8,479	$	15,123	$	23,602

Timing of revenue recognition for the six months ended June 30, 2020:

		Products and services transferred at point in time		Products and services transferred over time		Total
Medical:
Diabetes	$	-	$	27,051	$	27,051
Other Medical		4,181		3,244		7,425
Hearing Health:
Value Based DTEC		2,560		-		2,560
Value Based ITEC		2,109		-		2,109
Legacy OEM		3,685		-		3,685
Professional Audio Communications:		2,275		-		2,275
Total Revenue, net	$	14,810	$	30,295	$	45,105

Timing of revenue recognition for the three months ended June 30, 2019:

		Products and services transferred at point in time		Products and services transferred over time		Total
Medical:
Diabetes	$	-	$	17,950	$	17,950
Other Medical		-		2,942		2,942
Hearing Health:
Value Based DTEC		1,736		-		1,736
Value Based ITEC		2,399		-		2,399
Legacy OEM		2,540		-		2,540
Professional Audio Communications:		1,769		-		1,769
Total Revenue, net	$	8,444	$	20,892	$	29,336

Timing of revenue recognition for the six months ended June 30, 2019:

		Products and services transferred at point in time		Products and services transferred over time		Total
Medical:
Diabetes	$	-	$	35,114	$	35,114
Other Medical		-		6,571		6,571
Hearing Health:
Value Based DTEC		3,366		-		3,366
Value Based ITEC		4,976		-		4,976
Legacy OEM		5,343		-		5,343
Professional Audio Communications:		3,536		-		3,536
Total Revenue, net	$	17,221	$	41,685	$	58,906