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Note 2 - Revenue Recognition | 9 Months Ended
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Dec. 31, 2019
Notes to Financial Statements |
Revenue from Contract with Customer [Text Block] | Note 2. Revenue Recognition We design, manufacture, market, sell, and maintain quality control instruments and software, consumables, and services driven primarily by the regulatory requirements of niche markets. Our newly acquired division, Biopharmaceutical Development, designs, manufactures, markets, and sells instruments, such as protein synthesizers that are used to process immunoassay samples and related software designed to enhance productivity; consumable chemical solutions and CDs designed for use in testing; and on-demand and long-term service contracts to support customers use of the equipment. The division generates revenue from the same general categories as those we have identified for the rest of our business and recognizes revenue consistently with our policies. Our consumables, such as biological indicator test strips are typically used on a standalone basis; however, some, such as CDs used in protein synthesis and calibration solutions, are also critical to the ongoing use of our instruments. Hardware and software sales, such as medical meters, protein synthesizers, wireless sensor systems, and data loggers are generally driven by our acquisition of new customers, growth of existing customers, or customer replacement of existing equipment. Hardware sales may be offered with perpetual or annual software licenses, which in some cases are required for the hardware to function. We evaluate our revenues internally by product line, timing of revenue generation, and the nature of goods and services provided. Typically, discrete revenue is recognized at the shipping point or upon completion of the service, while contracted revenue is recognized over a period of time reflective of the performance obligation period in the applicable contract. Substantially all of our revenues and related receivables are generated from contracts with customers that are 12 months or less in duration. For both discrete and contracted revenue, evidence of an arrangement is typically in the form of a formal contract and/or purchase order. Prices are fixed at the time of the order and no price protections or variables are offered. Collectability is reasonably assured through our customer credit and review process, and payment is typically due within 60 days or less. Revenue is recognized when performance obligations under the terms of the contracts with our customers are satisfied. We expense commission costs as incurred. Our performance obligations related to the sale of instruments and consumables generally consist of the promise to sell tangible goods to distributors or end users. Ownership of these goods is typically transferred at time of shipment, at which point we have satisfied our performance obligation and we recognize revenue. Our performance obligations related to services may include testing, installation, and/or maintenance of our products, either on-site at our customers’ facilities or in our own calibration laboratories. Performance obligations arise from service contracts when discrete services are contracted in advance and performed at a future time, often at the time of the customer’s choosing. In this case, the performance obligation is satisfied, and revenue is recognized, upon the customer’s acceptance of the completion of the specified work. Alternatively, service revenue may be recognized for contracted services or maintenance provided continually over a period of time, and our performance obligations are satisfied by completing any service that is contractually required, if applicable, or simply by the passage of time if no services are required or requested. For contracted services, revenue is recognized on a straight-line basis over the life of the service contract, which is a faithful depiction of these annual service contracts, which may or may not be invoked. The following tables present disaggregated revenues for the three and nine months ended December 31, 2019 and three and nine months ended December 31, 2018 respectively:
|  | Three Months Ended December 31, 2019 |
|  | Sterilization and Disinfection Control |  |  | Instruments |  |  | Biopharmaceutical Development |  |  | Cold Chain Monitoring |  |  | Cold Chain Packaging |  |  | Total |
Discrete Revenues |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Consumables |  | $ | 9,948 |  |  | $ | 781 |  |  |  | 1,941 |  |  | $ | 13 |  |  | $ | 229 |  |  | $ | 12,912 |
Hardware and Software |  |  | 95 |  |  |  | 6,881 |  |  |  | 2,571 |  |  |  | 2,562 |  |  |  | -- |  |  |  | 12,109 |
Services |  |  | 360 |  |  |  | 2,352 |  |  |  | 656 |  |  |  | 849 |  |  |  | -- |  |  |  | 4,217 |
Contracted Revenues |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Services |  |  | 1,216 |  |  |  | -- |  |  |  | 469 |  |  |  | 732 |  |  |  | -- |  |  |  | 2,417 |
Total Revenues |  | $ | 11,619 |  |  | $ | 10,014 |  |  | $ | 5,637 |  |  | $ | 4,156 |  |  | $ | 229 |  |  | $ | 31,655 |
|  | Three Months Ended December 31, 2018 |
|  | Sterilization and Disinfection Control |  |  | Instruments |  |  | Biopharmaceutical Development |  |  | Cold Chain Monitoring |  |  | Cold Chain Packaging |  |  | Total |
Discrete Revenues |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Consumables |  | $ | 9,853 |  |  | $ | 834 |  |  |  | -- |  |  | $ | 151 |  |  | $ | 1,868 |  |  | $ | 12,706 |
Hardware and Software |  |  | 110 |  |  |  | 6,417 |  |  |  | -- |  |  |  | 1,980 |  |  |  | 49 |  |  |  | 8,556 |
Services |  |  | 372 |  |  |  | 2,090 |  |  |  | -- |  |  |  | 534 |  |  |  | 135 |  |  |  | 3,131 |
Contracted Revenues |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Services |  |  | 1,210 |  |  |  | -- |  |  |  | -- |  |  |  | 1,079 |  |  |  | -- |  |  |  | 2,289 |
Total Revenues |  | $ | 11,545 |  |  | $ | 9,341 |  |  | $ | -- |  |  | $ | 3,744 |  |  | $ | 2,052 |  |  | $ | 26,682 |
|  | Nine Months Ended December 31, 2019 |
|  | Sterilization and Disinfection Control |  |  | Instruments |  |  | Biopharmaceutical Development |  |  | Cold Chain Monitoring |  |  | Cold Chain Packaging |  |  | Total |
Discrete Revenues |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Consumables |  | $ | 30,487 |  |  | $ | 2,364 |  |  |  | 1,941 |  |  | $ | 34 |  |  | $ | 2,415 |  |  | $ | 37,241 |
Hardware and Software |  |  | 429 |  |  |  | 19,282 |  |  |  | 2,571 |  |  |  | 6,374 |  |  |  | -- |  |  |  | 28,656 |
Services |  |  | 1,301 |  |  |  | 6,872 |  |  |  | 656 |  |  |  | 1,959 |  |  |  | 27 |  |  |  | 10,815 |
Contracted Revenues |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Services |  |  | 3,606 |  |  |  | -- |  |  |  | 469 |  |  |  | 2,692 |  |  |  | -- |  |  |  | 6,767 |
Total Revenues |  | $ | 35,823 |  |  | $ | 28,518 |  |  | $ | 5,637 |  |  | $ | 11,059 |  |  | $ | 2,442 |  |  | $ | 83,479 |
|  | Nine Months Ended December 31, 2018 |
|  | Sterilization and Disinfection Control |  |  | Instruments |  |  | Biopharmaceutical Development |  |  | Cold Chain Monitoring |  |  | Cold Chain Packaging |  |  | Total |
Discrete Revenues |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Consumables |  | $ | 29,478 |  |  | $ | 2,272 |  |  |  | -- |  |  | $ | 351 |  |  | $ | 5,139 |  |  | $ | 37,240 |
Hardware and Software |  |  | 487 |  |  |  | 18,039 |  |  |  | -- |  |  |  | 4,951 |  |  |  | 105 |  |  |  | 23,582 |
Services |  |  | 884 |  |  |  | 6,465 |  |  |  | -- |  |  |  | 1,507 |  |  |  | 277 |  |  |  | 9,133 |
Contracted Revenues |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Services |  |  | 3,626 |  |  |  | -- |  |  |  | -- |  |  |  | 3,108 |  |  |  | -- |  |  |  | 6,734 |
Total Revenues |  | $ | 34,475 |  |  | $ | 26,776 |  |  | $ | -- |  |  | $ | 9,917 |  |  | $ | 5,521 |  |  | $ | 76,689 |
Revenues from external customers are attributed to individual countries based upon locations to which the product is shipped or exported, as follows:
|  | Three Months Ended December 31, |  |  | Nine Months Ended December 31, |
|  | 2019 |  |  | 2018 |  |  | 2019 |  |  | 2018 |
United States |  | $ | 17,810 |  |  | $ | 17,003 |  |  | $ | 48,007 |  |  | $ | 49,167 |
Foreign |  |  | 13,845 |  |  |  | 9,679 |  |  |  | 35,472 |  |  |  | 27,522 |
Total revenues |  | $ | 31,655 |  |  | $ | 26,682 |  |  | $ | 83,479 |  |  | $ | 76,689 |
No foreign country exceeds 10% of total revenues. Contract Balances Our contracts have varying payment terms and conditions. Some customers prepay for services, resulting in unearned revenues or customer deposits, called contract liabilities, which are included within other accrued expenses and unearned revenues in the accompanying Condensed Consolidated Balance Sheets. Contract assets would exist when sales are recorded (i.e. the control of the goods or services has been transferred to the customer), but customer payment is contingent on a future event besides the passage of time (such as satisfaction of additional performance obligations). We do not have any contract assets. Unbilled receivables, which are not classified as contract assets, represent arrangements in which sales have been recorded prior to billing and right to payment is unconditional. A summary of contract liabilities is as follows:
Contract liabilities balance as of March 31, 2019 |  | $ | 4,426 |
Prior year liabilities recognized in revenues during the nine months ended December 31, 2019 |  |  | (4,432 | )
Contract liabilities added during the nine months ended December 31, 2019, net of revenues recognized |  |  | 6,834 |
Contract liabilities balance as of December 31, 2019 |  | $ | 6,828 |

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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 -Publisher FASB -Name Accounting Standards Codification -Topic 606 -URI http://asc.fasb.org/topic&trid=49130388 + Details
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