Note 6 - Revenue From Contracts With Customers

9 Months Ended

Oct. 31, 2023

Notes to Financial Statements

Revenue from Contract with Customer [Text Block]

6. Revenue from Contracts with Customers

The following table presents revenue from contracts with customers disaggregated by timing of revenue recognition:

	Three Months Ended October 31,				Nine Months Ended October 31,
	2023		2022		2023		2022
Revenue recognized at a point in time:	(in thousands)
Total revenue recognized at a point in time	$	4,458	$	2,778	$	21,966	$	15,060
Revenue recognized over time:
Total revenue recognized over time		516		260		1,166		1,082
Total revenue from contracts with customers	$	4,974	$	3,038	$	23,132	$	16,142

The revenue from products manufactured and sold by our Seamap business is generally recognized at a point in time, or when the customer takes possession of the product, based on the terms and conditions stipulated in our contracts with customers. However, from time to time our Seamap business provides repair and maintenance services, or perform upgrades, on customer owned equipment in which case revenue is recognized over time. In addition, our Seamap business provides annual Software Maintenance Agreements (“SMA”) to customers who have an active license for software embedded in Seamap products. The revenue from SMA is recognized over time, with the total value of the SMA recognized in equal monthly amounts over the life of the contract.

The following table presents revenue from contracts with customers disaggregated by geography, based on the shipping location of our customers:

	Three Months Ended October 31,				Nine Months Ended October 31,
	2023		2022		2023		2022
	(in thousands)
United States	$	351	$	131	$	852	$	1,895
Europe		2,019		1,547		11,013		9,130
Asia-Pacific		1,591		1,252		10,085		4,850
Other		1,013		108		1,182		267
Total revenue from contracts with customers	$	4,974	$	3,038	$	23,132	$	16,142

As of October 31, 2023, and January 31, 2023, contract assets and liabilities consisted of the following:

	October 31, 2023		January 31, 2023
Contract Assets:	(in thousands)
Unbilled revenue - current	$	53	$	2
Total unbilled revenue	$	53	$	2
Contract Liabilities:
Deferred revenue & customer deposits - current	$	1,687	$	571
Total deferred revenue & customer deposits	$	1,687	$	571

Considering the products manufactured and sold by our Seamap business and the Company’s standard contract terms and conditions, we expect the Company's contract assets and liabilities to turn over, on average, within a period of three to nine months.

With respect to the disclosures above, sales and transaction-based taxes are excluded from revenue, and we do not disclose the value of unsatisfied performance obligations for contracts with an original expected duration of one year or less. Also, we expense costs incurred to obtain contracts because the amortization period would be one year or less. These costs are recorded in selling, general and administrative expenses.