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REVENUE, CONTRACT ASSETS AND CONTRACT LIABILITIES | 3 Months Ended
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Mar. 31, 2023
Revenue from Contract with Customer [Abstract] |
REVENUE, CONTRACT ASSETS AND CONTRACT LIABILITIES | NOTE 3 - REVENUE, CONTRACT ASSETS AND CONTRACT LIABILITIES Net Revenue For the three months ended March 31, 2023 and 2022, the components of revenue from contracts with customers and the related timing of revenue recognition is set forth in the table below (in thousands): SCHEDULE OF REVENUE FROM CONTRACT WITH CUSTOMERS
|  | Three Months Ended March 31, |
|  | 2023 |  |  | 2022 |
Product revenue: |  |  |  |  |  |  |  |
Appliance sales to VIPs |  | $ | 1,698 | (1) |  | $ | 1,863 | (1)
Center revenue |  |  | 74 |  |  |  | 186 |
Total product revenue |  |  | 1,772 |  |  |  | 2,049 |
Service revenue |  |  |  |  |  |  |  |
VIP |  |  | 1,294 | (2) |  |  | 914 | (2)
Billing intelligence services |  |  | 214 | (3) |  |  | 396 | (3)
Management service revenue (includes MID) |  |  | 27 |  |  |  | 24 |
Myofunctional therapy services |  |  | 217 |  |  |  | 220 |
Sponsorship/seminar/other |  |  | 333 |  |  |  | 41 |
Total service revenue |  |  | 2,085 |  |  |  | 1,595 |
Total revenue |  | $ | 3,857 |  |  | $ | 3,644 |
(1) | Appliance revenue from the sale of products is typically fixed at inception of the contract and is recognized at the point in time when shipment of the related products occurs.
(2) | VIP revenue disclosed above for the three months ended March 31, 2022, includes a cumulative adjustment from prior years of approximately $0.4 million decrease, and sales for the three months ended March 31, 2023 of approximately $1.3 million.
(3) | BIS revenue from subscription contracts is typically fixed at inception of the contract and is recognized ratably over time as the services are performed and the performance obligations completed. Revenue disclosed above for three months ended March 31, 2022, includes a cumulative adjustment from prior years of approximately $0.1 million increase, and sales for the three months ended March 31, 2023 of approximately $0.2 million.
Changes in Contract Liabilities The key components of changes in contract liabilities for the three months ended March 31, 2023 and 2022 are as follows (in thousands): SCHEDULE OF CONTRACT LIABILITY
|  | March 31, |
|  | 2023 |  |  | 2022 |
Beginning balance, January 1 |  | $ | 3,038 |  |  | $ | 2,399 |
New contracts, net of cancellations |  |  | 1,255 |  |  |  | 1,183 |
Revenue recognized |  |  | (1,396 | ) |  |  | (1,421 | )
Ending balance, March 31 |  | $ | 2,897 |  |  | $ | 2,161 |
Current portion of deferred revenue is approximately $2.6 million which is expected to be recognized over the next 12 months from the date of the period presented. Additionally, revenue from breakage on contract liabilities was approximately $0.2 million and $0.4 million for the three months ended March 31, 2023, and 2022, respectively. Changes in Accounts Receivable Our customers are billed based on fees agreed upon in each customer contract. Receivables from customers were $0.5 million at January 1, 2023 and $0.3 million at March 31, 2023. An allowance is maintained for accounts receivable which is generally based on a combination of factors, including the aging of the receivables, historical collection trends, and charge-offs. Adjustment to the allowance are recorded in bad debt expense under general and administrative expenses in the condensed consolidated statement of operations. A provision of $0.7 million was recorded in the first quarter of 2023. Shipping Costs Shipping costs for product deliveries to customers are expensed as incurred and totaled approximately $0.1 million for the three months ended March 31, 2023 and 2022, respectively. Shipping costs for product deliveries to customers are included in cost of goods sold in the accompanying condensed consolidated statement of operations.

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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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