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REVENUE | 12 Months Ended
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Dec. 31, 2023
Revenue from Contract with Customer [Abstract] |
REVENUE | NOTE 13—REVENUE OmniMetrix sells monitoring equipment (“HW”) and monitoring services (“Monitoring”). Prior to September 1, 2023, sales of OmniMetrix equipment typically did not qualify as a separate unit of accounting. As a result, revenue (and related costs) associated with sale of equipment was recorded to deferred revenue (and deferred cost of goods sold) upon shipment of PG and CP monitoring units. Revenue and related costs with respect to the sale of equipment were recognized over the estimated life of the units which was estimated to be three years. On September 1, 2023, OmniMetrix launched an updated version of its products that includes new functionality in its TrueGuard, AIRGuard, Patriot and Hero products that allows its customers to have options as it relates to obtaining and utilizing the data that is provided by its hardware devices. This new functionality allows for SIM card options, configuration options regarding IP address endpoints and DNS routes, and access to OmniMetrix’s over-the-air data protocol. This product update allows customers to have the option to purchase OmniMetrix’s monitoring service, monitor the products themselves if they have the ability in-house, or choose another monitoring provider if they so desire. OmniMetrix’s prior hardware product version could not function as a distinct product from its monitoring services. This new version’s functionality results in OmniMetrix’s hardware and monitoring services being capable of being two distinct products and services. OmniMetrix recognizes revenue, COGS and commissions from the sale of the new version of its hardware products sold when the product is shipped rather than over the estimated time that the unit is in service for the customer. The remaining balance of deferred hardware revenue from the prior version of these products will continue to be amortized each period until it is fully amortized. The modification to the circuit boards and embedded firmware of hardware enclosures in inventory as of August 31, 2023 were made such that only the new version of these products was sold subsequent to this date. The following table disaggregates the Company’s revenue for the years ended December 31, 2023 and 2022 (in thousands): SCHEDULE OF DISAGGREGATES OF REVENUE
|  | HW |  |  | Monitoring |  |  | Total |
Year ended December 31, 2023: |  |  |  |  |  |  |  |  |  |  |  |
PG Segment |  | $ | 2,994 |  |  | $ | 4,006 |  |  | $ | 7,000 |
CP Segment |  |  | 803 |  |  |  | 256 |  |  |  | 1,059 |
Total Revenue |  | $ | 3,797 |  |  | $ | 4,262 |  |  | $ | 8,059 |
|  | HW |  |  | Monitoring |  |  | Total |
Year ended December 31, 2022: |  |  |  |  |  |  |  |  |  |  |  |
PG Segment |  | $ | 2,234 |  |  | $ | 3,660 |  |  | $ | 5,894 |
CP Segment |  |  | 854 |  |  |  | 252 |  |  |  | 1,106 |
Total Revenue |  | $ | 3,088 |  |  | $ | 3,912 |  |  | $ | 7,000 |
Deferred revenue activity for the year ended December 31, 2023 can be seen in the table below (in thousands): SCHEDULE OF DEFERRED REVENUE ACTIVITY
|  | HW |  |  | Monitoring |  |  | Total |
Balance at December 31, 2022 |  | $ | 3,751 |  |  | $ | 2,420 |  |  | $ | 6,171 |
Additions during the period |  |  | 1,595 |  |  |  | 4,461 |  |  |  | 6,056 |
Recognized as revenue |  |  | (2,381 | ) |  |  | (4,262 | ) |  |  | (6,643 | )
Balance at December 31, 2023 |  | $ | 2,965 |  |  | $ | 2,619 |  |  | $ | 5,584 |
Amounts to be recognized as revenue in the year ending: |  |
December 31, 2024 |  | $ | 1,841 |  |  | $ | 2,193 |  |  | $ | 4,034 |
December 31, 2025 |  |  | 956 |  |  |  | 424 |  |  |  | 1,380 |
December 31, 2026 and thereafter |  |  | 168 |  |  |  | 2 |  |  |  | 170 |
Total |  | $ | 2,965 |  |  | $ | 2,619 |  |  | $ | 5,584 |
The amount of hardware revenue recognized during the year ended December 31, 2023 that was included in deferred revenue at the beginning of the fiscal year was $1,890,000. The amount of monitoring revenue during the year ended December 31, 2023 that was included in deferred revenue at the beginning of the fiscal year was $2,054,000. Deferred revenue activity for the year ended December 31, 2022 can be seen in the table below (in thousands):
|  | HW |  |  | Monitoring |  |  | Total |
Balance at December 31, 2021 |  | $ | 3,268 |  |  | $ | 2,125 |  |  | $ | 5,393 |
Balance |  | $ | 3,268 |  |  | $ | 2,125 |  |  | $ | 5,393 |
Additions during the period |  |  | 2,776 |  |  |  | 4,207 |  |  |  | 6,983 |
Recognized as revenue |  |  | (2,293 | ) |  |  | (3,912 | ) |  |  | (6,205 | )
Balance at December 31, 2022 |  | $ | 3,751 |  |  | $ | 2,420 |  |  | $ | 6,171 |
Balance |  | $ | 3,751 |  |  | $ | 2,420 |  |  | $ | 6,171 |
SCHEDULE OF RECONCILIATION OF HARDWARE REVENUE
Reconciliation of Hardware Revenue |  | 2023 |  |  | 2022 |
Amortization of deferred revenue |  | $ | 2,381 |  |  | $ | 2,293 |
Sales of custom designed units and related accessories |  |  | 259 |  |  |  | — |
Hardware sales (new product versions) |  |  | 475 |  |  |  | — |
Other accessories, services, shipping and miscellaneous charges |  |  | 682 |  |  |  | 795 |
Total hardware revenue |  | $ | 3,797 |  |  | $ | 3,088 |
Deferred charges relate only to the sale of HW. Deferred charges activity for the year ended December 31, 2023 can be seen in the table below (in thousands): SCHEDULE OF DEFERRED CHARGES ACTIVITY
Balance at December 31, 2022 |  | $ | 1,694 |
Additions during the period |  |  | 655 |
Recognized as cost of sales |  |  | (1,064 | )
Balance at December 31, 2023 |  | $ | 1,285 |
Amounts to be recognized as cost of sales in the year ending: |  |  |  |
December 31, 2024 |  | $ | 809 |
December 31, 2025 |  |  | 406 |
December 31, 2026 and thereafter |  |  | 70 |
|  | $ | 1,285 |
Deferred charges relate only to the sale of HW. Deferred charges activity for the year ended December 31, 2022 can be seen in the table below (in thousands):
Balance at December 31, 2021 |  | $ | 1,513 |
Balance |  | $ | 1,513 |
Additions during the period |  |  | 1,267 |
Recognized as cost of sales |  |  | (1,086 | )
Balance at December 31, 2022 |  | $ | 1,694 |
Balance |  | $ | 1,694 |
SCHEDULE OF RECONCILIATION OF COGS EXPENSE
Reconciliation of COGS Expense |  | 2023 |  |  | 2022 |
Amortization of deferred COGS |  | $ | 1,064 |  |  | $ | 1,086 |
COGS of custom designed units and related accessories |  |  | 67 |  |  |  | — |
COGS of hardware sales (new product versions) |  |  | 215 |  |  |  | — |
Data costs for monitoring |  |  | 299 |  |  |  | 325 |
Other accessories, services, shipping and miscellaneous charges |  |  | 410 |  |  |  | 518 |
Total COGS expense |  | $ | 2,055 |  |  | $ | 1,929 |
The following table provides a reconciliation of the Company’s sales commissions contract assets for the year ended December 31, 2023 (in thousands): SCHEDULE OF SALES COMMISSIONS CONTRACT ASSETS
|  | HW |  |  | Monitoring |  |  | Total |
Balance at December 31, 2022 |  | $ | 319 |  |  | $ | 80 |  |  | $ | 399 |
Additions during the period |  |  | 148 |  |  |  | 53 |  |  |  | 201 |
Amortization of sales commissions |  |  | (199 | ) |  |  | (37 | ) |  |  | (236 | )
Balance at December 31, 2023 |  | $ | 268 |  |  | $ | 96 |  |  | $ | 364 |
The capitalized sales commissions are included in other current assets ($202,000) and other assets ($162,000) in the Company’s Consolidated Balance Sheets at December 31, 2023. SCHEDULE OF SALES COMMISSIONS EXPENSE
Amounts to be recognized as sales commissions expense in the year ending: |  |  |
December 31, 2024 |  | $ | 202 |
December 31, 2025 |  |  | 119 |
December 31, 2026 and thereafter |  |  | 43 |
Total |  | $ | 364 |
The following table provides a reconciliation of the Company’s sales commissions contract assets for the year ended December 31, 2022 (in thousands):
|  | HW |  |  | Monitoring |  |  | Total |
Balance at December 31, 2021 |  | $ | 242 |  |  | $ | 53 |  |  | $ | 295 |
Balance |  | $ | 242 |  |  | $ | 53 |  |  | $ | 295 |
Additions during the period |  |  | 233 |  |  |  | 55 |  |  |  | 288 |
Amortization of sales commissions |  |  | (156 | ) |  |  | (28 | ) |  |  | (184 | )
Balance at December 31, 2022 |  | $ | 319 |  |  | $ | 80 |  |  | $ | 399 |
Balance |  | $ | 319 |  |  | $ | 80 |  |  | $ | 399 |
The capitalized sales commissions are included in other current assets ($196,000) and other assets ($203,000) in the Company’s Consolidated Balance Sheets at December 31, 2022.

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- Definition The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 9 -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-9 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 10 -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-10 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-15 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-12 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-12 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-12 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-12 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-12 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Subparagraph (b)(2) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-13 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Name Accounting Standards Codification -Topic 606 -Publisher FASB -URI https://asc.fasb.org//606/tableOfContent + Details
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