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REVENUE
 9 Months Ended
Sep. 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 nine- and three-month periods ended September 30, 2025 and 2024 (in thousands):

 

   Hardware   Monitoring   Total 
Nine months ended September 30, 2025:               
PG Segment  $4,542   $3,965   $8,507 
CP Segment   410    184    594 
Total Revenue  $4,952   $4,149   $9,101 

 

   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 
Three months ended September 30, 2025:               
PG Segment  $761   $1,499   $2,260 
CP Segment   157    61    218 
Total Revenue  $918   $1,560   $2,478 

 

   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 

 

Deferred revenue activity for the nine months ended September 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   —    4,192    4,192 
Recognized as revenue   (800)   (4,148)   (4,948)
Balance at September 30, 2025  $324   $3,153   $3,477 
                
Amounts to be recognized as revenue in the twelve-month-period ending:               
September 30, 2026  $324    2,834    3,158 
September 30, 2027   —    316    316 
September 30, 2028 and thereafter   —    3    3 
Total  $324    3,153    3,477 

 

The amount of hardware revenue recognized during the nine months ended September 30, 2025 that was included in deferred revenue at the beginning of the fiscal year was $800,000. The amount of monitoring revenue during the nine months ended September 30, 2025 that was included in deferred revenue at the beginning of the fiscal year was $2,478,000.

 

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

 

Reconciliation of Hardware Revenue  2025   2024   2025   2024 
  

Nine months ended

September 30,

  

Three months ended

September 30,

 
Reconciliation of Hardware Revenue  2025   2024   2025   2024 
Amortization of deferred revenue  $800   $1,463   $215   $436 
Sales of custom designed units and related accessories   58    —    —    — 
Hardware sales (new product versions)   3,708    2,297    548    1,342 
Other accessories, services, shipping and miscellaneous charges   386    347    155    134 
Total hardware revenue  $4,952   $4,107   $918   $1,912 

 

Deferred COGS relate only to the sale of equipment. Deferred COGS activity for the nine-month period ended September 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   (342)
Balance at September 30, 2025  $134 
      
Amounts to be recognized as COGS in the twelve-month-period ending:     
September 30, 2026  $134 

 

 

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

 

Reconciliation of COGS Expense  2025   2024   2025   2024 
  

Nine months ended

September 30,

  

Three months ended

September 30,

 
Reconciliation of COGS Expense  2025   2024   2025   2024 
Amortization of deferred COGS  $342   $644   $91   $193 
COGS of custom designed units and related accessories   16    —    —    — 
COGS of hardware sales (new product versions)   1,335    960    246    530 
Data costs for monitoring   219    186    73    63 
Other COGS of accessories, services, shipping and miscellaneous charges   279    224    122    77 
Total COGS expense  $2,191   $2,014   $533   $863 

 

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

 

   Hardware   Monitoring   Total 
Balance at December 31, 2024  $104   $124   $228 
Additions during the period   —    60    60 
Amortization of sales commissions   (74)   (44)   (118)
Balance at September 30, 2025  $30    140    170 

 

The capitalized sales commissions are included in other current assets ($87,000) and other assets ($83,000) in the Company’s unaudited condensed consolidated balance sheet at September 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):

 

      
September 30, 2026  $87 
September 30, 2027   43 
September 30, 2028 and thereafter   40 
Total  $170