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Revenue
 12 Months Ended
Dec. 31, 2020
Revenue from Contract with Customer [Abstract]  
Revenue

NOTE 13—REVENUE

 

The following table disaggregates the Company’s revenue for the years ended December 31, 2020 and 2019 (in thousands):

 

    HW     Monitoring     Total  
Year ended December 31, 2020:                        
PG Segment   $ 1,423     $ 3,565     $ 4,988  
CP Segment     680       254       934  
Total Revenue   $ 2,103     $ 3,819     $ 5,922  

 

    HW     Monitoring     Total  
Year ended December 31, 2019:                        
PG Segment   $ 1,193     $ 3,089     $ 4,282  
CP Segment     970       238       1,208  
Total Revenue   $ 2,163     $ 3,327     $ 5,490  

 

Deferred revenue activity for the year ended December 31, 2020 can be seen in the table below (in thousands):

 

    HW     Monitoring     Total  
Balance at December 31, 2019   $ 2,663     $ 1,832     $ 4,495  
Additions during the period     1,602       3,965       5,567  
Recognized as revenue     (1,689 )     (3,819 )     (5,508 )
Balance at December 31, 2020     2,576       1,978       4,554  
                         
Amounts to be recognized as revenue in the year ending:                        
December 31, 2021     1,471       1,743       3,214  
December 31, 2022     846       226       1,072  
December 31, 2023 and thereafter     259       9       268  
    $ 2,576     $ 1,978     $ 4,554  

 

Other revenue of approximately $414,000 is related to custom design hardware, accessories, repairs, and other miscellaneous charges that are recognized to revenue when sold and are not deferred.

 

Deferred revenue activity for the year ended December 31, 2019 can be seen in the table below (in thousands):

 

    HW     Monitoring     Total  
Balance at December 31, 2018   $ 2,432     $ 1,629     $ 4,061  
Additions during the period     2,199       3,529       5,728  
Recognized as revenue     (1,968 )     (3,326 )     (5,294 )
Balance at December 31, 2019   $ 2,663     $ 1,832     $ 4,495  
                         
Amounts to be recognized as revenue in the year ending:                        
December 31, 2020   $ 1,350     $ 1,654     $ 2,732  
December 31, 2021     990       174       975  
December 31, 2022 and thereafter     323       4       354  
    $ 2,663     $ 1,832     $ 4,495  

 

Other revenue of approximately $196,000 is related to revenue from sales of custom design hardware, accessories, repairs, and other miscellaneous charges that are recognized to revenue when sold and are not deferred.

 

Deferred charges relate only to the sale of equipment. Deferred charges activity for the year ended December 31, 2020 can be seen in the table below (in thousands):

 

Balance at December 31, 2019   $ 1,433  
Additions during the period     794  
Recognized as cost of sales     (921 )
Balance at December 31, 2020   $ 1,306  
         
Amounts to be recognized as cost of sales in the year ending:        
December 31, 2021   $ 764  
December 31, 2022     420 *
December 31, 2023 and thereafter     122 *
    $ 1,306  

 

* Amounts included in Other Assets in the Company’s Consolidated Balance Sheets at December 31, 2020.

 

Data costs (COGS) for monitoring services of approximately $608,000 and the COGS for the miscellaneous revenue from sales of custom design hardware, accessories and repairs of approximately $262,000 are expensed as incurred and are not deferred.

 

Deferred charges activity for the year ended December 31, 2019 can be seen in the table below (in thousands):

 

Balance at December 31, 2018   $ 1,438  
Additions during the period     1,241  
Recognized as cost of sales     (1,246 )
Balance at December 31, 2019   $ 1,433  
         
Amounts to be recognized as cost of sales in the year ending:        
December 31, 2020   $ 741  
December 31, 2021     531 *
December 31, 2022 and thereafter     161 *
    $ 1,433  

 

* Amounts included in Other Assets in the Company’s Consolidated Balance Sheets at December 31, 2019.

 

Data costs (COGS) for monitoring services of approximately $544,000 and the COGS for the miscellaneous revenue from sales of accessories and repairs of approximately $110,000 are expensed as incurred and are not deferred.

 

The Company pays its employees sales commissions for sales of HW and for first sales of monitoring services (not for renewals). In accordance with Topic 606, Revenue from Contracts with Customers, of the FASB Accounting Standards Codification (“ASC 606”), the Company capitalizes as a contract asset the sales commissions on these sales. Contract assets associated with HW are amortized over the estimated life of the units which are currently estimated to be three years. Contract assets associated with monitoring services are amortized over the expected monitoring life including renewals.

 

The following table provides a reconciliation of the Company’s sales commissions contract assets for the year ended December 31, 2020 (in thousands):

 

    HW     Monitoring     Total  
Balance at December 31, 2019   $ 101     $ 37     $ 138  
Additions during the period     106       23       129  
Amortization of sales commissions     (71 )     (19 )     (90 )
Balance at December 31, 2020   $ 136     $ 41     $ 177  

 

The capitalized sales commissions are included in Other Current Assets (approximately $90,000) and Other Assets (approximately $87,000) in the Company’s Consolidated Balance Sheets at December 31, 2020.

 

The following table provides a reconciliation of the Company’s sales commissions contract assets for the year ended December 31, 2019 (in thousands):

 

    HW     Monitoring     Total  
Balance at December 31, 2018   $ 107     $ 36     $ 143  
Additions during the period     69       18       87  
Amortization of sales commissions     (75 )     (17 )     (92 )
Balance at December 31, 2019   $ 101     $ 37     $ 138  

 

The capitalized sales commissions are included in Other Current Assets (approximately $60,000) and Other Assets (approximately $78,000) in the Company’s Consolidated Balance Sheets at December 31, 2019.