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REVENUE | 9 Months Ended
--- | ---
Sep. 30, 2023
Revenue from Contract with Customer [Abstract] |
REVENUE | NOTE 10—REVENUE The following table disaggregates the Company’s revenue for the nine-month and three-month periods ended September 30, 2023 and 2022 (in thousands): SCHEDULE OF DISAGGREGATES OF REVENUE
|  | Hardware |  |  | Monitoring |  |  | Total |
Nine months ended September 30, 2023: |  |  |  |  |  |  |  |  |  |  |  |
PG Segment |  | $ | 2,017 |  |  | $ | 2,977 |  |  | $ | 4,994 |
CP Segment |  |  | 620 |  |  |  | 195 |  |  |  | 815 |
Total Revenue |  | $ | 2,637 |  |  | $ | 3,172 |  |  | $ | 5,809 |
|  | Hardware |  |  | Monitoring |  |  | Total |
Nine months ended September 30, 2022: |  |  |  |  |  |  |  |  |  |  |  |
PG Segment |  | $ | 1,610 |  |  | $ | 2,725 |  |  | $ | 4,335 |
CP Segment |  |  | 631 |  |  |  | 189 |  |  |  | 820 |
Total Revenue |  | $ | 2,241 |  |  | $ | 2,914 |  |  | $ | 5,155 |
|  | Hardware |  |  | Monitoring |  |  | Total |
Three months ended September 30, 2023: |  |  |  |  |  |  |  |  |  |  |  |
PG Segment |  | $ | 780 |  |  | $ | 1,018 |  |  | $ | 1,798 |
CP Segment |  |  | 224 |  |  |  | 65 |  |  |  | 289 |
Total Revenue |  | $ | 1,004 |  |  | $ | 1,083 |  |  | $ | 2,087 |
|  | Hardware |  |  | Monitoring |  |  | Total |
Three months ended September 30, 2022: |  |  |  |  |  |  |  |  |  |  |  |
PG Segment |  | $ | 608 |  |  | $ | 902 |  |  | $ | 1,510 |
CP Segment |  |  | 217 |  |  |  | 56 |  |  |  | 273 |
Total Revenue |  | $ | 825 |  |  | $ | 958 |  |  | $ | 1,783 |
Deferred revenue activity for the nine months ended September 30, 2023 can be seen in the table below (in thousands): SCHEDULE OF DEFERRED REVENUE ACTIVITY
|  | Hardware |  |  | Monitoring |  |  | Total |
Balance at December 31, 2022 |  | $ | 3,751 |  |  | $ | 2,420 |  |  | $ | 6,171 |
Additions during the period |  |  | 1,597 |  |  |  | 3,436 |  |  |  | 5,033 |
Recognized as revenue |  |  | (1,821 | ) |  |  | (3,172 | ) |  |  | (4,993 | )
Balance at September 30, 2023 |  | $ | 3,527 |  |  | $ | 2,684 |  |  | $ | 6,211 |
Amounts to be recognized as revenue in the twelve-month-period ending: |  |  |  |  |  |  |  |  |  |  |  |
September 30, 2024 |  | $ | 2,023 |  |  | $ | 2,247 |  |  | $ | 4,270 |
September 30, 2025 |  |  | 1,179 |  |  |  | 433 |  |  |  | 1,612 |
September 30, 2026 and thereafter |  |  | 325 |  |  |  | 4 |  |  |  | 329 |
|  | $ | 3,527 |  |  | $ | 2,684 |  |  | $ | 6,211 |
The amount of hardware revenue recognized during the nine months ended September 30, 2023 that was included in deferred revenue at the beginning of the fiscal year was $1,469,000. The amount of monitoring revenue during the nine months ended September 30, 2023 that was included in deferred revenue at the beginning of the fiscal year was $1,890,000. SCHEDULE OF RECONCILIATION OF HARDWARE REVENUE
Reconciliation of Hardware Revenue |  | 2023 |  |  | 2022 |  |  | 2023 |  |  | 2022 |
|  | Nine months ended September 30, |  |  | Three months ended September 30, |
Reconciliation of Hardware Revenue |  | 2023 |  |  | 2022 |  |  | 2023 |  |  | 2022 |
Amortization of deferred revenue |  | $ | 1,821 |  |  | $ | 1,658 |  |  | $ | 629 |  |  | $ | 631 |
Sales of custom designed units and related accessories |  |  | 135 |  |  |  | — |  |  |  | 43 |  |  |  | — |
Hardware sales (new product versions) |  |  | 150 |  |  |  | — |  |  |  | 150 |  |  |  | — |
Other accessories, services, shipping and miscellaneous charges |  |  | 531 |  |  |  | 583 |  |  |  | 182 |  |  |  | 194 |
Total hardware revenue |  | $ | 2,637 |  |  | $ | 2,241 |  |  | $ | 1,004 |  |  | $ | 825 |
Deferred charges relate only to the sale of equipment. Deferred charges activity for the nine months ended September 30, 2023 can be seen in the table below (in thousands): SCHEDULE OF DEFERRED CHARGES ACTIVITY
Balance at December 31, 2022 |  | $ | 1,694 |
Additions, net of adjustments, during the period |  |  | 655 |
Recognized as COGS |  |  | (817 | )
Balance at September 30, 2023 |  | $ | 1,532 |
Amounts to be recognized as COGS in the twelve-month-period ending: |  |  |  |
September 30, 2024 |  | $ | 890 |
September 30, 2025 |  |  | 507 |
September 30, 2026 and thereafter |  |  | 135 |
|  | $ | 1,532 |
SCHEDULE OF RECONCILIATION OF COGS EXPENSE
Reconciliation of COGS Expense |  | 2023 |  |  | 2022 |  |  | 2023 |  |  | 2022 |
|  | Nine months ended September 30, |  |  | Three months ended September 30, |
Reconciliation of COGS Expense |  | 2023 |  |  | 2022 |  |  | 2023 |  |  | 2022 |
Amortization of deferred COGS |  | $ | 817 |  |  | $ | 793 |  |  | $ | 277 |  |  | $ | 309 |
COGS of custom designed units and related accessories |  |  | 34 |  |  |  | — |  |  |  | 11 |  |  |  | — |
COGS of hardware sales (new product versions) |  |  | 66 |  |  |  | — |  |  |  | 66 |  |  |  | — |
Data costs for monitoring |  |  | 224 |  |  |  | 250 |  |  |  | 76 |  |  |  | 93 |
Other COGS of accessories, services, shipping and miscellaneous charges |  |  | 312 |  |  |  | 393 |  |  |  | 107 |  |  |  | 166 |
Total COGS expense |  | $ | 1,453 |  |  | $ | 1,436 |  |  | $ | 537 |  |  | $ | 568 |
The following table provides a reconciliation of the Company’s sales commissions contract assets for the nine-month period ended September 30, 2023 (in thousands): SCHEDULE OF SALES COMMISSIONS CONTRACT ASSETS
|  | Hardware |  |  | Monitoring |  |  | Total |
Balance at December 31, 2022 |  | $ | 319 |  |  | $ | 80 |  |  | $ | 399 |
Additions during the period |  |  | 148 |  |  |  | 43 |  |  |  | 191 |
Amortization of sales commissions |  |  | (149 | ) |  |  | (27 | ) |  |  | (176 | )
Balance at September 30, 2023 |  | $ | 318 |  |  |  | 96 |  |  |  | 414 |
The capitalized sales commissions are included in other current assets ($218,000) and other assets ($196,000) in the Company’s unaudited condensed consolidated balance sheets as of September 30, 2023. The capitalized sales commissions are included in other current assets ($196,000) and other assets ($203,000) in the Company’s condensed consolidated balance sheet at December 31, 2022. Amounts to be recognized as sales commission expense in the twelve-month-period ending: SCHEDULE OF SALES COMMISSIONS EXPENSE
September 30, 2024 |  | $ | 218 |
September 30, 2025 |  |  | 138 |
September 30, 2026 and thereafter |  |  | 58 |
Total |  | $ | 414 |
The contract assets of deferred COGS and deferred sales commissions are subject to review under ASU 2016-13, see Notes 2 and 4; however, no credit losses on contract assets are expected based on the Company’s implementation of ASU 2016-13. Commissions earned from the sales of the new hardware products will be recognized when the product is shipped.

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