Note 6 - Revenue From Contracts With Customers

3 Months Ended

Apr. 30, 2024

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 April 30,
	2024		2023
Revenue recognized at a point in time:	(in thousands)
Total revenue recognized at a point in time	$	9,377	$	10,512
Revenue recognized over time:
Total revenue recognized over time		301		85
Total revenue from contracts with customers	$	9,678	$	10,597

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 performs 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 April 30,
	2024		2023
	(in thousands)
United States	$	345	$	392
Europe		2,785		6,500
Asia-Pacific		5,843		3,582
Other		705		123
Total revenue from contracts with customers	$	9,678	$	10,597

As of April 30, 2024, and January 31, 2024, contract assets and liabilities consisted of the following:

	April 30, 2024		January 31, 2024
Contract Assets:	(in thousands)
Unbilled revenue - current	$	16	$	26
Total unbilled revenue	$	16	$	26
Contract Liabilities:
Deferred revenue & customer deposits - current	$	3,529	$	3,649
Total deferred revenue & customer deposits	$	3,529	$	3,649

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.