Revenue Recognition

3 Months Ended

Mar. 31, 2021

Revenue Recognition [Abstract]

Revenue Recognition

3.Revenue Recognition

Revenue is measured based on consideration specified in the contract with a customer. Revenue from all customers is recognized when a performance obligation is satisfied by transferring control of a distinct good or service to a customer. 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. Consequently, the transaction price is recognized as revenue over time. The transaction price for contractual arrangements without an enforceable right to payment including a reasonable margin is recognized as revenue at a point in time.  

The Company’s revenue recognition policy is further detailed in “Note 1: Summary of Significant Accounting Policies” of the Company’s Annual Report on Form 10-K for the year ended December 31, 2020.

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

Timing of revenue recognition for the three months ended March 31, 2021:
		Products and services transferred at point in time		Products and services transferred over time		Total
Diabetes	$	-	$	18,364	$	18,364
Interventional Catheters		3,802		-		3,802
Other Medical		1,590		1,368		2,958
Value Based DTEC		937		-		937
Value Based ITEC		1,301		-		1,301
Legacy OEM		3,421		-		3,421
Professional Audio Communications		985		-		985
Total Revenue, net	$	12,036	$	19,732	$	31,768
Timing of revenue recognition for the three months ended March 31, 2020:
		Products and services transferred at point in time		Products and services transferred over time		Total
Diabetes	$	-	$	13,530	$	13,530
Interventional Catheters		-		-		-
Other Medical		1,820		1,008		2,828
Value Based DTEC		1,173		-		1,173
Value Based ITEC		744		-		744
Legacy OEM		1,964		-		1,964
Professional Audio Communications		1,264		-		1,264
Total Revenue, net	$	6,965	$	14,538	$	21,503

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During the quarter ended March 31, 2020, we recorded a cumulative adjustment of $1,200 to reduce revenue within our other medical market to correct an error related to prior periods as a result of our determination that a portion of our sales being recognized over time needed to be recognized at a point in time. The adjustment included a reduction of the related cost of goods sold of $800 and related impacts to reduce the contract asset and an increase to inventory. The adjustment was not material to our consolidated condensed financial statements for any quarterly or annual period.

Net revenue by geography is allocated based on shipment and set forth below:

		Three Months Ended
Net Revenue by Geography		March 31, 2021		March 31, 2020
United States	$	23,701	$	17,788
Europe		1,264		1,187
Asia		3,468		2,200
All other countries		3,335		328
Consolidated	$	31,768	$	21,503

Geographic net revenue is allocated based on the shipment location of the Company’s direct OEM customer.

For the three months ended March 31, 2021, and 2020, one customer accounted for 68% and 63%, respectively, of the Company’s consolidated net revenue.

Two customers combined accounted for 60% and 69% of the Company’s consolidated accounts receivable at March 31, 2021 and December 31, 2020, respectively.

Two customers accounted for the Company’s consolidated contract assets at March 31, 2021 and December 31, 2020, respectively.