Note 3 - Revenue Recognition

6 Months Ended

Jun. 30, 2021

Notes to Financial Statements

Revenue from Contract with Customer [Text Block]

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.

During the 2021 second quarter, the Company reclassified first quarter revenue of $682 from certain customers in Legacy OEM to Value Based ITEC for the six months ended June 30, 2021. 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, 2021:

	Products and services transferred at point in time		Products and services transferred over time		Total
Diabetes	$	-	$	15,247	$	15,247
Interventional Catheters		4,198		-		4,198
Other Medical		2,059		1,451		3,510
Value Based DTEC		950		-		950
Value Based ITEC		2,570		-		2,570
Legacy OEM		2,888		-		2,888
Professional Audio Communications		852		-		852
Total Revenue, net	$	13,517	$	16,698	$	30,215

Timing of revenue recognition for the six months ended June 30, 2021:

	Products and services transferred at point in time		Products and services transferred over time		Total
Diabetes	$	-	$	33,611	$	33,611
Interventional Catheters		8,000		-		8,000
Other Medical		3,649		2,819		6,468
Value Based DTEC		1,887		-		1,887
Value Based ITEC		4,555		-		4,555
Legacy OEM		5,625		-		5,625
Professional Audio Communications		1,837		-		1,837
Total Revenue, net	$	25,553	$	36,430	$	61,983

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
Diabetes	$	-	$	13,521	$	13,521
Interventional Catheters		1,146		-		1,146
Other Medical		1,849		1,602		3,451
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
Diabetes	$	-	$	27,051	$	27,051
Interventional Catheters		1,146		-		1,146
Other Medical		3,035		3,244		6,279
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

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

	Three Months Ended				Six Months Ended
Net Revenue by Geography	June 30, 2021		June 30, 2020		June 30, 2021		June 30, 2020
United States	$	21,801	$	17,228	$	45,502	$	35,016
Europe		1,676		957		2,940		2,144
Asia		4,017		2,791		7,485		4,991
All other countries		2,721		2,626		6,056		2,954
Consolidated	$	30,215	$	23,602	$	61,983	$	45,105

Geographic net revenue is allocated based on the shipment location of the Company’s direct OEM customer. These customers then distribute products globally. 

    For the three and six months ended June 30, 2021, and 2020, one customer accounted for 61% and 64%, and 61% and 62%, respectively, of the Company’s consolidated net revenue.

Two customers combined accounted for 48% and 69% of the Company’s consolidated accounts receivable at June 30, 2021 and December 31, 2020, respectively.

Two customers accounted for the Company’s consolidated contract assets at June 30, 2021 and December 31, 2020, respectively.