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Revenue
 9 Months Ended
Dec. 31, 2022
Revenue from Contract with Customer [Abstract]  
Revenue Revenue
The following table provides information regarding the Company’s revenue for each of the services it provides pursuant to its spectrum revenue agreements for the three and nine months ended December 31, 2022 and 2021 (in thousands):
 Three months ended December 31,Nine months ended December 31,
 2022202120222021
Spectrum revenues
900 MHz Broadband Spectrum Revenue
Ameren$152$202$457$202
Evergy(1)
244—308—
Narrowband Spectrum Revenue
Motorola182183546547
Total spectrum revenue(2)
$578$385$1,311$749
1.The Company commenced revenue recognition in connection with the delivery of cleared 900 MHz Broadband Spectrum and the associated broadband licenses to Evergy for 70 counties.
2.Revenue recognized during the three and nine months ended December 31, 2022 and 2021 was included in deferred revenue at the beginning of the respective periods.
Spectrum Revenue Agreements
Refer to the Company’s 2022 Annual Report for a description of the Company’s spectrum revenue agreements entered into prior to March 31, 2022. The following reflects agreements entered into during the nine months ended December 31, 2022.
On October 28, 2022, the Company entered into an agreement with Xcel Energy providing Xcel Energy dedicated long-term usage of the Company’s 900 MHz Broadband Spectrum for a term of 20 years throughout Xcel Energy’s service territory in eight states including Colorado, Michigan, Minnesota, New Mexico, North Dakota, South Dakota, Texas and Wisconsin. The Xcel Energy Agreement also provides Xcel Energy an option to extend the agreement for two 10-year terms for additional payments. The Xcel Energy Agreement allows Xcel Energy to deploy a private LTE network to support its grid modernization initiatives for the benefit of its approximately 3.7 million electricity customers and 2.1 million natural gas customers. The scheduled prepayments for the 20-year initial terms of the Xcel Energy Agreement total $80.0 million, of which $8.0 million was received by the Company in December 2022. The remaining prepayments for the 20-year initial term are due by mid-2028, per the terms of the Xcel Energy Agreement and as the Company delivers the relevant cleared 900 MHz Broadband Spectrum and the associated broadband licenses. The Company is working with incumbents to clear the 900 MHz Broadband Spectrum allocation in Xcel Energy service territories. In accordance with ASC 606 Revenue from Contracts with Customers, the payments of prepaid fees under the Xcel Energy Agreement will be accounted for as deferred revenue on the Company’s Consolidated Balance Sheets. Revenue will be recognized over time as the performance obligations of clearing the 900 MHz Broadband Spectrum and the associated broadband licenses are delivered by respective county, over the contractual term of approximately 20 years.
Contract Assets
The Company recognizes a contract asset for the incremental costs of obtaining a contract with a customer. These costs include sales commissions and stock compensation. These costs are amortized ratably using the portfolio approach over the estimated customer contract period. The Company will review the contract asset on a periodic basis to determine if an impairment exists, and subsequent to the Company’s adoption of ASU 2016-13, will review the contract assets for potential credit loss exposure. If it is determined that there is an impairment, or a potential credit loss, the Company will expense the contract asset.
For the nine months ended December 31, 2022 and 2021, the Company incurred and capitalized commission costs and stock compensation related to activities to obtain its long-term 900 MHz Broadband Spectrum lease agreements amounting to approximately $109,000 and $129,000, respectively. These capitalized costs will be amortized over the contractual term upon the commencement of the associated agreements.
The following table presents the activity for the Company’s contract assets (in thousands):
 Contract Assets
Balance at March 31, 2022
$638
Additions109
Amortization(11)
Balance at December 31, 2022
736
Less amount classified as current assets - prepaid expenses and other current assets(347)
Noncurrent assets - included in other assets$389
Contract liabilities
Contract liabilities primarily relate to advance consideration received from customers for spectrum services, for which revenue is recognized over time, as the services are performed. These contract liabilities are recorded as deferred revenue on the balance sheet.
For the nine months ended December 31, 2022, deferred revenue increased by $8.0 million as a result of prepayments received in connection with the Xcel Energy Agreement. For the nine months ended December 31, 2021, deferred revenue increased by $52.8 million as a result of prepayments received in connection with the Ameren Corporation (“Ameren”) and Evergy lease agreements.
The following table presents the activity for the Company’s contract liabilities (in thousands):
 Contract Liabilities
Balance at March 31, 2022
$54,678
Additions8,000
Revenue recognized(1,311)
Balance at December 31, 2022
61,367
Less amount classified as current liabilities(2,656)
Noncurrent liabilities$58,711