Note 4 - Revenue Recognition

12 Months Ended

Dec. 31, 2021

Notes to Financial Statements

Revenue from Contract with Customer [Text Block]

4. 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 to payment exists, control of these units is deemed to transfer over time during the manufacturing process. Consequently, the transaction price is recognized over time. The transaction price for contractual arrangements without 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".

The following tables set forth, for the periods indicated, net revenue by market:

Timing of revenue recognition for the year ended December 31, 2021:

	Products and services transferred at point in time		Products and services transferred over time		Total
Diabetes	$	-	$	69,733	$	69,733
Interventional Catheters		14,572		-		14,572
Other Medical		8,725		5,359		14,084
Hearing Health Value Based DTEC		3,479		-		3,479
Hearing Health Value Based ITEC		8,048		-		8,048
Hearing Health Legacy OEM		10,848		-		10,848
Professional Audio Communications		4,442		-		4,442
Total Revenue, net	$	50,114	$	75,092	$	125,206

Timing of revenue recognition for the year ended December 31, 2020:

	Products and services transferred at point in time		Products and services transferred over time		Total
Diabetes	$	-	$	59,311	$	59,311
Interventional Catheters		7,361		-		7,361
Other Medical (a)		6,677		5,688		12,365
Hearing Health Value Based DTEC		4,430		-		4,430
Hearing Health Value Based ITEC		5,558		-		5,558
Hearing Health Legacy OEM		8,968		-		8,968
Professional Audio Communications		4,780		-		4,780
Total Revenue, net	$	37,774	$	64,999	$	102,773

(a) During the quarter ended March 31, 2020, we recorded a cumulative adjustment of $1.2 million 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 to the related cost of goods sold of $0.8 million and related impacts to reduce the contract asset and increase to inventory. The adjustment was not material to our Consolidated Financial Statements for any quarterly or annual period.

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

	Year Ended December 31,
Net Revenue to Geographical Areas	2021		2020
United States	$	92,921	$	75,326
Europe		6,561		5,501
Asia		12,554		11,476
All other countries		13,170		10,470
Consolidated	$	125,206	$	102,773

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

For the years ended December 31, 2021 and 2020, one customer accounted for 64% and 63% respectively, of the Company's consolidated net revenue.

Two customers combined accounted for 44% and 69% of the Company's consolidated accounts receivable at December 31, 2021 and December 31, 2020, respectively.

Two customers accounted for 100% of the Company's consolidated contract assets at December 31, 2021 and December 31, 2020.