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Note 14 - Revenue From Contracts With Customers | 12 Months Ended
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Dec. 31, 2024
Notes to Financial Statements |
Revenue from Contract with Customer [Text Block] | NOTE 14 REVENUE FROM CONTRACTS WITH CUSTOMERS Revenue from contracts with customers relates to the Extended Warranty and Kingsway Search Xcelerator segments and includes: vehicle service agreement fees, GAP commissions, maintenance support service fees, warranty product commissions, business services consulting revenue, healthcare services revenue and software license and support revenue. Revenue is based on terms of various agreements with credit unions, consumers and businesses. Customers either pay in full at the inception of a warranty contract or commission product sale, or when consulting, healthcare and software license and support services are billed, or on terms subject to the Company’s customary credit reviews. The following table disaggregates revenues from contracts with customers by revenue type:
(in thousands) |  |  | Years ended December 31, |
|  |  | 2024 |  |  | 2023 |
Vehicle service agreement fees and GAP commissions | IWS, Geminus and PWI |  | $ | 60,513 |  |  | $ | 60,022 |
Maintenance support service fees | Trinity |  |  | 3,809 |  |  |  | 4,179 |
Warranty product commissions | Trinity |  |  | 4,548 |  |  |  | 4,029 |
Business services consulting fees | Ravix, CSuite and Image Solutions |  |  | 19,761 |  |  |  | 19,403 |
Healthcare services fees | SNS and DDI |  |  | 17,269 |  |  |  | 14,848 |
Software license and support fees | SPI |  |  | 3,482 |  |  |  | 763 |
Service fee and commission revenue |  | $ | 109,382 |  |  | $ | 103,244 |
Service fee receivables Receivables from contracts with customers are reported as service fee receivable, net in the consolidated balance sheets and at December 31, 2024 and December 31, 2023 were $9.4 million and $10.1 million, respectively. The decrease in receivables from contracts with customers is primarily due to the timing difference between the Company's satisfaction of performance obligations and customer payments; partially offset by an increase related to Image Solutions receivables which were acquired om September 26, 2024. At December 31, 2022, service fee receivable, net was $10.3 million. The decrease in receivables from contracts with customers from December 31, 2022 to December 31, 2023 is primarily due to the timing difference between the Company's satisfaction of performance obligations and customer payments. Service fee receivable is reported net of an estimated allowance for credit losses at December 31, 2024 and December 31, 2023 of $0.6 million and $0.2 million, respectively. During the years ended December 31, 2024 and December 31, 2023, the Company recorded an increase to its allowance for credit losses of $0.6 million and $0.1 million, respectively. Service fee receivables that are deemed to be uncollectible are written off against the allowance for credit losses when identified. The Company recorded write-offs of service fee receivables that were deemed to be uncollectible of $0.2 million and less than $0.1 million during the years ended December 31, 2024 and December 31, 2023, respectively. Contract asset The Company records a contract asset, which is included in other assets in the consolidated balance sheets, when revenue is recognized prior to billing the customer. Upon billing, which typically occurs over a three to five year installment period, the value of the contract asset is reversed and service fee receivable is recorded. The Company did not have a contract asset prior to the acquisition of SPI on September 7, 2023. Changes in contract asset for the years ended December 31, 2024 and December 31, 2023 were as follows:
(in thousands) |  | Years ended December 31, |
Balance, December 31, 2022 |  | $ | — |
Contract asset acquired related to SPI |  |  | 1,765 |
Contract asset additions |  |  | 20 |
Amounts transferred to service fee receivables |  |  | (97 | )
Balance, December 31, 2023 |  |  | 1,688 |
Contract asset additions |  |  | 1,093 |
Amounts transferred to service fee receivables |  |  | (521 | )
Write-off of contract asset balances |  |  | (40 | )
Measurement period adjustment related to SPI |  |  | (342 | )
Balance, December 31, 2024 |  | $ | 1,878 |
The contract asset is reported net of an estimated allowance for credit losses of zero at December 31, 2024 and December 31, 2023. Contract assets that are deemed to be uncollectible are written off against the allowance for credit losses when identified. During the years ended December 31, 2024 and December 31, 2023, the Company recorded write-offs to the contract asset for amounts that were deemed to be uncollectible of less than $0.1 million and zero, respectively. As discussed in Note 4, "Acquisitions," during the second quarter of 2024, the Company recorded a measurement period adjustment related to acquisition of SPI that decreased the estimated value of the contract asset of $0.3 million. Deferred service fees The Company records deferred service fees resulting from contracts with customers when payment is received in advance of satisfying the performance obligations. Changes in deferred service fees for the years ended December 31, 2024 and December 31, 2023 were as follows:
(in thousands) |  | Years ended December 31, |
Balance, December 31, 2022 |  | $ | 82,713 |
Deferred service fees acquired related to SPI |  |  | 423 |
Deferral of revenue |  |  | 56,712 |
Recognition of deferred service fees |  |  | (55,853 | )
Balance, December 31, 2023 |  |  | 83,995 |
Deferral of revenue |  |  | 63,506 |
Recognition of deferred service fees |  |  | (64,393 | )
Balance, December 31, 2024 |  | $ | 83,108 |
The decrease in deferred service fees during the year ended December 31, 2024 is primarily due to deferred service fees recognized in excess of additions to deferred service fees during the year ended December 31, 2024. The increase in deferred service fees during the year ended December 31, 2023 is primarily due to additions to deferred service fees in excess of deferred service fees recognized during the year ended December 31, 2023. Approximately $44.3 million and $44.6 million of service fee and commission revenue recognized during the years ended December 31, 2024 and December 31, 2023 was included in deferred service fees as of December 31, 2023 and December 31, 2022, respectively. Remaining performance obligations The Company expects to recognize within one year as service fee and commission revenue approximately 53.1% of the outstanding performance obligations of December 31, 2024. The balance relates primarily to vehicle service agreement fees. Deferred contract costs Deferred contract costs represent the deferral of incremental costs to obtain or fulfill a contract with a customer. The deferred contract costs balances and related amortization expense for the years ended December 31, 2024 and December 31, 2023 are comprised as follows:
(in thousands) |  | Years ended December 31, 2024 |  |  | Years ended December 31, 2023 |
|  | Costs to Obtain a Contract |  |  | Costs to Fulfill a Contract |  |  | Total |  |  | Costs to Obtain a Contract |  |  | Costs to Fulfill a Contract |  |  | Total |
Balance at January 1, net |  | $ | 13,653 |  |  | $ | 81 |  |  | $ | 13,734 |  |  | $ | 13,174 |  |  | $ | 83 |  |  | $ | 13,257 |
Additions |  |  | 9,595 |  |  |  | 24 |  |  |  | 9,619 |  |  |  | 9,381 |  |  |  | 24 |  |  |  | 9,405 |
Amortization |  |  | (9,440 | ) |  |  | (24 | ) |  |  | (9,464 | ) |  |  | (8,902 | ) |  |  | (26 | ) |  |  | (8,928 | )
Balance at December 31, net |  | $ | 13,808 |  |  | $ | 81 |  |  | $ | 13,889 |  |  | $ | 13,653 |  |  | $ | 81 |  |  | $ | 13,734 |
No impairment losses related to deferred contract costs were recorded in 2024 or 2023.

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- Definition The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 9 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-9 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 10 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-10 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-15 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Subparagraph (b)(2) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-13 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Name Accounting Standards Codification -Topic 606 -Publisher FASB -URI https://asc.fasb.org/606/tableOfContent + Details
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