Revenue from Contracts with Customers (ASC 606)

9 Months Ended

Sep. 30, 2020

Revenue from Contract with Customer [Abstract]

Revenue from Contracts with Customers (ASC 606)

Revenue from Contracts with Customers (ASC 606)The adoption of ASC 606 represents a change in accounting principle that was intended to more closely align revenue recognition with the delivery of the Company's products and services and provide enhanced disclosures. In accordance with ASC 606, revenue is recognized when a customer obtains control of promised products and services. The amount of revenue recognized reflects the consideration which the Company expects to be entitled to receive in exchange for these products and services.

Disaggregation of Revenue

The following table summarizes net sales from contracts with customers for the three and nine months ended September 30, 2020 and 2019:


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2020		2019		2020		2019
Mobile connectivity product, transferred at point in time	$	6,671	$	7,540	$	18,737	$	22,536
Mobile connectivity product, transferred over time	549		537		1,778		1,507
Mobile connectivity service	24,163		23,565		68,950		67,982
Inertial navigation product	9,430		6,731		23,178		19,169
Inertial navigation service	299		938		1,963		4,223
Total net sales	$	41,112	$	39,311	$	114,606	$	115,417

Revenue recognized during the three months ended September 30, 2020 and 2019 from amounts included in contract liabilities at the beginning of the period was $523 and $453, respectively. Revenue recognized during the nine months ended September 30, 2020 and 2019 from amounts included in contract liabilities at the beginning of the period was $1,739 and $1,360, respectively.

For mobile connectivity product sales, the delivery of the Company’s performance obligations, and associated revenue, are generally transferred to the customer at a point in time, with the exception of certain mini-VSAT contracts which are transferred to customers over time. For mobile connectivity service sales, the delivery of the Company’s performance obligations and associated revenue are transferred to the customer over time. For inertial navigation product sales, the delivery of the Company’s performance obligations, and associated revenue, are generally transferred to the customer at a point in time. For inertial navigation service sales, the Company's performance obligations, and associated revenue, are generally transferred to customers over time.

Business and Credit Concentrations

Concentrations of risk with respect to trade accounts receivable are generally limited due to the large number of customers and their dispersion across several geographic areas. Although the Company does not foresee that credit risk associated with these receivables will deviate from historical experience, repayment is dependent upon the financial stability of those individual customers. The Company establishes allowances for potential bad debts and evaluates, on a monthly basis, the adequacy of those reserves based upon historical experience and its expectations for future collectability concerns. The Company performs ongoing credit evaluations of the financial condition of its customers and generally does not require collateral.

No single customer accounted for 10% or more of consolidated net sales for the three or nine months ended September 30, 2020 or 2019 or accounts receivable at September 30, 2020 or December 31, 2019.

Certain components from third parties used in the Company’s products are procured from single sources of supply. The failure of a supplier, including a subcontractor, to deliver on schedule could delay or interrupt the Company’s delivery of products and thereby materially adversely affect the Company’s revenues and operating results.