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Revenue Recognition
 3 Months Ended
Mar. 31, 2021
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:

 

    As of March 31,  
    2021     2020  
Revenue by product line:                
Advertising   $ 11,074,425     $ 11,837,984  
Digital subscriptions     7,084,481       5,537,247  
Magazine circulation     14,710,023       12,537,532  
Other     746,552       500,090  
Total   $ 33,615,481     $ 30,412,853  
Revenue by geographical market:                
United States   $ 32,528,417     $ 29,282,130  
Other     1,087,064       1,130,723  
Total   $ 33,615,481     $ 30,412,853  
Revenue by timing of recognition:                
At point in time   $ 26,531,000     $ 24,875,606  
Over time     7,084,481       5,537,247  
Total   $ 33,615,481     $ 30,412,853  

 

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  
    March 31, 2021     December 31, 2020  
Unearned revenue (short-term contract liabilities):                
Digital subscriptions   $ 16,815,476     $ 15,039,331  
Magazine circulation     49,047,713       46,586,345  
    $ 65,863,189     $ 61,625,676  
Unearned revenue (long-term contract liabilities):                
Digital subscriptions   $ 802,124     $ 593,136  
Magazine circulation     27,297,916       22,712,961  
Other     200,000       192,500  
    $ 28,300,040     $ 23,498,597  

 

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 $22,071,978 was recognized during the three months ended March 31, 2021 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.