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REVENUE
 6 Months Ended
Jun. 30, 2025
Revenue from Contract with Customer [Abstract]  
REVENUE

NOTE 11—REVENUE

 

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 independent 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 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 modifications 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 that date.

 

The following table disaggregates the Company’s revenue for the six- and three-month periods ended June 30, 2025 and 2024 (in thousands):

 

   Hardware   Monitoring   Total 
Six months ended June 30, 2025:               
PG Segment  $3,781   $2,466   $6,247 
CP Segment   253    123    376 
Total Revenue  $4,034   $2,589   $6,623 

 

   Hardware   Monitoring   Total 
Six months ended June 30, 2024:               
PG Segment  $1,767   $2,088   $3,855 
CP Segment   428    124    552 
Total Revenue  $2,195   $2,212   $4,407 

 

 

   Hardware   Monitoring   Total 
Three months ended June 30, 2025:               
PG Segment  $2,100   $1,260   $3,360 
CP Segment   105    60    165 
Total Revenue  $2,205   $1,320   $3,525 

 

   Hardware   Monitoring   Total 
Three months ended June 30, 2024:               
PG Segment  $1,014   $1,047   $2,061 
CP Segment   151    63    214 
Total Revenue  $1,165   $1,110   $2,275 

 

Deferred revenue activity for the six months ended June 30, 2025 can be seen in the table below (in thousands):

 

   Hardware   Monitoring   Total 
Balance at December 31, 2024  $1,124   $3,109   $4,233 
Additions during the period   —    2,610    2,610 
Recognized as revenue   (585)   (2,589)   (3,174)
Balance at June 30, 2025  $539   $3,130   $3,669 
                
Amounts to be recognized as revenue in the twelve-month-period ending:               
June 30, 2026  $534    2,621    3,155 
June 30, 2027   5    507    512 
June 30, 2028 and thereafter        2    2 
Total  $539    3,130    3,669 

 

The amount of hardware revenue recognized during the six months ended June 30, 2025 that was included in deferred revenue at the beginning of the fiscal year was $585,000. The amount of monitoring revenue during the six months ended June 30, 2025 that was included in deferred revenue at the beginning of the fiscal year was $1,916,000.

 

The following table provides a reconciliation of the Company’s hardware revenue for the six- and three-month periods ended June 30, 2025 and 2024 (in thousands):

 

Reconciliation of Hardware Revenue  2025   2024   2025   2024 
  

Six months ended

June 30,

  

Three months ended

June 30,

 
Reconciliation of Hardware Revenue  2025   2024   2025   2024 
Amortization of deferred revenue  $585   $1,027   $270   $492 
Sales of custom designed units and related accessories   58    —    —    — 
Hardware sales (new product versions)   3,160    955    1,808    579 
Other accessories, services, shipping and miscellaneous charges   231    213    127    94 
Total hardware revenue  $4,034   $2,195   $2,205   $1,165 

 

Deferred COGS relate only to the sale of equipment. Deferred COGS activity for the six-month period ended June 30, 2025 can be seen in the table below (in thousands):

 

      
Balance at December 31, 2024  $476 
Additions, net of adjustments, during the period   — 
Recognized as COGS   (251)
Balance at June 30, 2025  $225 
      
Amounts to be recognized as COGS in the twelve-month-period ending:     
June 30, 2026  $223 
June 30, 2027   2 
   $225 

 

 

The following table provides a reconciliation of the Company’s COGS expense for the six- and three-month periods ended June 30, 2025 and 2024 (in thousands):

 

Reconciliation of COGS Expense  2025   2024   2025   2024 
  

Six months ended

June 30,

  

Three months ended

June 30,

 
Reconciliation of COGS Expense  2025   2024   2025   2024 
Amortization of deferred COGS  $251   $451   $115   $216 
COGS of custom designed units and related accessories   16    —    —    — 
COGS of hardware sales (new product versions)   1,089    430    620    267 
Data costs for monitoring   145    123    72    61 
Other COGS of accessories, services, shipping and miscellaneous charges   157    147    79    66 
Total COGS expense  $1,658   $1,151   $886   $610 

 

The following table provides a reconciliation of the Company’s sales commissions contract assets for the six-month period ended June 30, 2025 (in thousands):

 

   Hardware   Monitoring   Total 
Balance at December 31, 2024  $104   $124   $228 
Additions during the period   —    39    39 
Amortization of sales commissions   (54)   (28)   (82)
Balance at June 30, 2025  $50    135    185 

 

The capitalized sales commissions are included in other current assets ($104,000) and other assets ($81,000) in the Company’s unaudited condensed consolidated balance sheet at June 30, 2025. The capitalized sales commissions are included in other current assets ($137,000) and other assets ($91,000) in the Company’s condensed consolidated balance sheet at December 31, 2024.

 

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

 

      
June 30, 2026  $104 
June 30, 2027   42 
June 30, 2028 and thereafter   39 
Total  $185