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Revenue Recognition
 6 Months Ended
Jun. 30, 2020
Revenue from Contract with Customer [Abstract]  
Revenue Recognition

11. Revenue Recognition

 

Disaggregation of Revenue

 

The following table provides information about disaggregated revenue by product line, geographical market and timing of revenue recognition:

 

   

Three Months Ended

June 30,

    

Six Months Ended

June 30,

  
    2020     2019     2020     2019  
Revenue by product line:                                
Advertising   $ 7,541,616     $ 5,670,712     $ 19,379,600     $ 11,808,066  
Digital subscriptions     6,089,450       56,021       11,626,697       107,934  
Magazine circulation     8,629,166       -       21,166,698       -  
Other     830,708       43,550       1,330,798       128,246  
Total   $ 23,090,940     $ 5,770,283     $ 53,503,793     $ 12,044,246  
Revenue by geographical market:                                
United States   $ 22,049,636     $ 5,770,283     $ 51,331,766     $ 12,044,246  
Other     1,041,304       -       2,172,027       -  
Total   $ 23,090,940     $ 5,770,283     $ 53,503,793     $ 12,044,246  
Revenue by timing of recognition:                                
At point in time   $ 17,001,490     $ 5,714,262     $ 41,877,096     $ 11,936,312  
Over time     6,089,450       56,021       11,626,697       107,934  
Total   $ 23,090,940     $ 5,770,283     $ 53,503,793     $ 12,044,246  

 

Contract Balances

 

The timing of the Company’s performance under its various contracts often differs from the timing of the customer’s payment, which results in the recognition of a contract asset or a contract liability. A contract asset is recognized when a good or service is transferred to a customer and the Company does not have the contractual right to bill for the related performance obligations. A contract liability is recognized when consideration is received from the customer prior to the transfer of goods or services.

 

The following table provides information about contract balances:

 

    As of  
    June 30, 2020     December 31, 2019  
Unearned revenue (short-term contract liabilities):                
Digital subscriptions     12,688,136       8,634,939  
Magazine circulation     42,731,290       23,528,148  
    $ 55,419,426     $ 32,163,087  
Unearned revenue (long-term contract liabilities):                
Digital subscriptions   $ 1,473,758     $ 478,557  
Magazine circulation     13,135,330       30,478,154  
Other     207,500       222,500  
    $ 14,816,588     $ 31,179,211  

 

Unearned Revenue – Unearned revenue, also referred to as contract liabilities, include payments received in advance of performance under the contracts and are recognized as revenue over time. The Company records contract liabilities as unearned revenue on the consolidated balance sheets. Digital subscription and magazine circulation revenue of $17,211,363 was recognized during the six months ended June 30, 2020 from unearned revenue at the beginning of the year.

 

During January and February of 2020, the Company modified certain digital and magazine subscription contracts that prospectively changed the frequency of the related issues required to be delivered on a yearly basis. The Company determined that the remaining digital content and magazines to be delivered are distinct from the digital content or magazines already provided under the original contract. As a result, the Company in effect established a new contract that included only the remaining digital content or magazines. Accordingly, the Company allocated the remaining performance obligations in the contracts as consideration from the original contract that has not yet been recognized as revenue.