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REVENUE
 9 Months Ended
Sep. 30, 2021
Revenue from Contract with Customer [Abstract]  
REVENUE REVENUE
Disaggregated Revenue
The following table shows revenue by product and services groups (in thousands):
Three Months Ended
September 30,		Nine Months Ended
September 30,
2021202020212020
Licensing, support and maintenance$8,136 $5,211 $24,353 $14,005 
Variable royalties739 832 1,913 2,679 
Other84 386 164 682 
Total$8,959 $6,429 $26,430 $17,366 
Contract Balances
The following table provides information about accounts receivable, net, contract assets and deferred revenue (in thousands):
As of
September 30,
2021		December 31,
2020
Accounts receivable, net$8,123 $14,350 
Contract assets$1,183 $1,359 
Deferred revenue$(38,248)$(32,908)
The Company recognized revenue of $6.2 million and $5.0 million for the three months ended September 30, 2021 and 2020, respectively, and $14.7 million and $11.7 million for the nine months ended September 30, 2021 and 2020, respectively, that was included in the deferred revenue balance at the beginning of the respective periods.
Contracted but unsatisfied performance obligations were $41.3 million and $37.6 million as of September 30, 2021 and December 31, 2020, respectively, and included unearned revenue and non-cancelable Flexible Spending Account (“FSA”) Agreements from customers where actual product selection and quantities of specific products are to be determined by customers at a future period. FSA commitments amounted to $3.0 million and $4.7 million as of September 30, 2021 and December 31, 2020, respectively. The Company has elected to exclude the potential future royalty receipts from the remaining performance obligations. The contracted but unsatisfied or partially unsatisfied performance obligations, excluding non-cancelable FSA, expected to be recognized in revenue over the next 12 months as of September 30, 2021 are $23.4 million, with the remainder recognized thereafter.
The following table is a rollforward of deferred revenue as of September 30, 2021 and December 31, 2020 (in thousands):
As of September 30, 2021
Deferred revenue licensing, support and maintenance - balance as of December 31, 2020
32,908 
Additions29,857 
Revenue recognized(24,517)
Deferred revenue licensing, support and maintenance - balance as of September 30, 2021$38,248 
As of
December 31, 2020
Deferred revenue licensing, support and maintenance - beginning balance as of December 31, 2019
$23,116 
Additions37,200 
Revenue recognized(27,408)
Deferred revenue licensing, support and maintenance - ending balance as of December 31, 2020
$32,908 
The Company recognized $0.7 million and $0.8 million for the three months ended September 30, 2021 and 2020, respectively, and $1.9 million and $2.7 million for the nine months ended September 30, 2021 and 2020, respectively, from performance obligations satisfied from sales-based royalties earned during the periods.
Costs of Obtaining a Contract with a Customer
Incremental costs of obtaining a contract with a customer consist primarily of direct sales commissions incurred upon execution of the contract. These costs are required to be capitalized under ASC 340-40, Other Assets and Deferred Costs — Contracts With Customers, and amortized over the license term. As direct sales commissions paid for term extensions are commensurate with the amounts paid for initial contracts, the deferred incremental costs for initial contracts and for term extensions are recognized over the respective contract terms. Total capitalized direct commission costs were as follows (in thousands):
As of
September 30,
2021		December 31,
2020
Short-term commissions capitalized in prepaid expenses and other current assets$1,660 $1,079 
Long-term commissions capitalized in other assets1,325 1,479 
Total$2,985 $2,558 
Amortization of capitalized sales commissions was $0.6 million and $0.3 million for the three months ended September 30, 2021 and 2020, respectively, and $1.5 million and $1.2 million for the nine months ended September 30, 2021 and 2020, respectively.
Amortization of capitalized sales commissions are included in sales and marketing expense in the condensed consolidated statements of loss and comprehensive loss.