Revenue from Contracts with Customers

Effective February 1, 2018 the Company adopted the New Revenue Standard using the modified retrospective method applied to those contracts which were not completed as of February 1, 2018. Results for reporting periods beginning after January 31, 2018 are presented under Topic 606, while prior period amounts are not adjusted and continue to be reported in accordance with our historic accounting under Topic 605.

Under the New Revenue Standard, revenues are recognized when control of the promised goods or services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. The Company has determined that the New Revenue Standard applies to contracts performed by the businesses in our Marine Technology Products segment, but not to contracts performed by our Equipment Leasing segment which are within the scope of other revenue recognition standards.

The impact of adopting the New Revenue Standard was not material, as the analysis of our contracts under the New Revenue Standard supports the recognition of revenue at a point in time for the majority of our contracts, which is consistent with our revenue recognition model. As a result, the Company did not record an adjustment to opening retained earnings as a result of the adoption of the New Revenue Standard.

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



	Three Months Ended October 31, 2018		Nine Months Ended October 31, 2018
Revenue recognized at a point in time:	(in thousands)
Seamap	$	5,356	$	10,512
Klein	2,683		5,560
SAP	1,085		2,362
Total revenue recognized at a point in time	$	9,124	$	18,434
Revenue recognized over time:
Seamap	$	181	$	591
Total revenue recognized over time	181		591
Total revenue from contracts with customers	$	9,305	$	19,025

The revenue from products manufactured and sold by our Seamap and Klein businesses, as well as the revenue from products marketed and sold by our SAP 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. Our Seamap business also provides Software Maintenance Agreements (“SMA”) to customers who have an active license for software imbedded in Seamap products. The revenue from SMA’s is recognized over time, with the total value of the SMA amortized in equal monthly amounts over the life of the contract.

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



	Three Months Ended October 31, 2018		Nine Months Ended October 31, 2018
	(in thousands)
United States	$	1,104	$	2,356
Europe, Russia & CIS	5,629		10,395
Middle East & Africa	515		1,151
Asia-Pacific	1,820		4,499
Canada & Latin America	237		624
Total revenue from contracts with customers	$	9,305	$	19,025

As of October 31, 2018 contract assets and liabilities consisted of the following:



	October 31, 2018
Contract Assets:	(in thousands)
Unbilled revenue-current	$	2,435
Unbilled revenue - non-current	—
Total unbilled revenue	$	2,435
Contract Liabilities:
Deferred revenue & customer deposits - current	$	521
Deferred revenue & customer deposits - non-current	6
Total deferred revenue & customer deposits	$	527

Considering the products manufactured and sold by the businesses in our Marine Technology Products segment and the Company’s standard contract terms and conditions, we expect our contract assets and liabilities to turn over, on average, within a three to six month period.

Pursuant to practical expedients and exemptions included in the New Revenue Standard, sales and transaction-based taxes are excluded from revenue. Also, we do not disclose the value of unsatisfied performance obligations for contacts with an original expected duration of one year or less. Additionally, we expense costs incurred to obtain contracts when incurred because the amortization period would have been one year or less. These costs are recorded in selling, general and administrative expenses.