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REVENUE
 9 Months Ended
Sep. 30, 2024
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, 2024 and 2023 (in thousands):

 

  Hardware   Monitoring   Total 
Nine months ended September 30, 2024:               
PG Segment  $3,517   $3,164   $6,681 
CP Segment   590    186    776 
Total Revenue  $4,107   $3,350   $7,457 

 

  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 
Three months ended September 30, 2024:               
PG Segment  $1,750   $1,076   $2,826 
CP Segment   162    62    224 
Total Revenue  $1,912   $1,138   $3,050 

 

  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 

 

See Concentrations of Credit Risk in Note 2 for additional discussion.

 

 

Deferred revenue activity for the nine months ended September 30, 2024 can be seen in the table below (in thousands):

 

  Hardware   Monitoring   Total 
Balance at December 31, 2023  $2,965   $2,619   $5,584 
Additions during the period   —    3,613    3,613 
Recognized as revenue   (1,463)   (3,350)   (4,813)
Balance at September 30, 2024  $1,502   $2,882   $4,384 
                
Amounts to be recognized as revenue in the twelve-month period ending:               
September 30, 2025  $1,178   $2,394   $3,572 
September 30, 2026   324    485    809 
September 30, 2027 and thereafter   —    3    3 
Total  $1,502   $2,882   $4,384 

 

The amount of hardware revenue recognized during the nine months ended September 30, 2024 that was included in deferred revenue at the beginning of the fiscal year was $1,463,000. The amount of monitoring revenue during the nine months ended September 30, 2024 that was included in deferred revenue at the beginning of the fiscal year was $2,081,000.

 

The following table provides a reconciliation of the Company’s hardware revenue for the nine- and three-month periods ended September 30, 2024 and 2023 (in thousands):

 

Reconciliation of Hardware Revenue  2024   2023   2024   2023 
 

Nine months ended

September 30,

  

Three months ended

September 30,

 
Reconciliation of Hardware Revenue  2024   2023   2024   2023 
Amortization of deferred revenue  $1,463   $1,821   $436   $629 
Sales of custom designed units and related accessories   —    135    —    43 
Hardware sales (new product versions)   2,297    150    1,342    150 
Other accessories, services, shipping and miscellaneous charges   347    531    134    182 
Total hardware revenue  $4,107   $2,637   $1,912   $1,004 

 

Deferred COGS relate only to the sale of equipment. Deferred COGS activity for the nine-month period ended September 30, 2024 can be seen in the table below (in thousands):

 

      
Balance at December 31, 2023  $1,285 
Additions, net of adjustments, during the period   — 
Recognized as COGS   (644)
Balance at September 30, 2024  $641 
      
Amounts to be recognized as COGS in the twelve-month-period ending:     
September 30, 2025  $507 
September 30, 2026   134 
September 30, 2027 and thereafter   — 
   $641 

 

 

The following table provides a reconciliation of the Company’s COGS expense for the nine- and three-month periods ended September 30, 2024 and 2023 (in thousands):

 

Reconciliation of COGS Expense  2024   2023   2024   2023 
  

Nine months ended

September 30,

  

Three months ended

September 30,

 
Reconciliation of COGS Expense  2024   2023   2024   2023 
Amortization of deferred COGS  $644   $817   $193   $277 
COGS of custom designed units and related accessories   —    34    —    11 
COGS of hardware sales (new product versions)   960    66    530    66 
Data costs for monitoring   186    224    63    76 
Other COGS of accessories, services, shipping and miscellaneous charges   224    312    77    107 
Total COGS expense  $2,014   $1,453   $863   $537 

 

The following table provides a reconciliation of the Company’s sales commissions contract assets for the nine-month period ended September 30, 2024 (in thousands):

 

   Hardware   Monitoring   Total 
Balance at December 31, 2023  $268   $96   $364 
Additions during the period   —    35    35 
Amortization of sales commissions   (130)   (33)   (163)
Balance at September 30, 2024  $138    98    236 

 

The capitalized sales commissions are included in other current assets ($150,000) and other assets ($86,000) in the Company’s unaudited condensed consolidated balance sheets as of September 30, 2024. The capitalized sales commissions are included in other current assets ($202,000) and other assets ($162,000) in the Company’s condensed consolidated balance sheet at December 31, 2023.

 

Amounts to be recognized as sales commission expense in the twelve-month-period ending:

 

      
September 30, 2025  $150 
September 30, 2026   63 
September 30, 2027 and thereafter   23 
Total  $236