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REVENUE, CONTRACT ASSETS AND CONTRACT LIABILITIES | 9 Months Ended | 12 Months Ended
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Sep. 30, 2023 | Dec. 31, 2022
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 and nine months ended September 30, 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 September 30, |  |  | Nine Months Ended September 30, |
|  | 2023 |  |  | 2022 |  |  | 2023 |  |  | 2022 |
Product revenue: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Appliance sales to VIPs |  | $ | 1,423 | (1) |  | $ | 1,909 | (1) |  | $ | 4,641 | (1) |  | $ | 5,846 | (1)
Center revenue |  |  | 43 |  |  |  | 105 |  |  |  | 142 |  |  |  | 511 |
Total product revenue |  |  | 1,466 |  |  |  | 2,014 |  |  |  | 4,783 |  |  |  | 6,357 |
Service revenue |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
VIP |  |  | 980 |  |  |  | 1,553 |  |  |  | 3,184 |  |  |  | 3,603 | (2)
Billing intelligence services |  |  | 218 | (3) |  |  | 265 | (3) |  |  | 651 | (3) |  |  | 937 | (3)
Sleep testing services |  |  | 308 |  |  |  | 132 |  |  |  | 882 |  |  |  | 342 |
Myofunctional therapy services |  |  | 228 |  |  |  | 190 |  |  |  | 666 |  |  |  | 667 |
Sponsorship/seminar/other |  |  | 101 |  |  |  | 92 |  |  |  | 387 |  |  |  | 168 |
Total service revenue |  |  | 1,835 |  |  |  | 2,232 |  |  |  | 5,770 |  |  |  | 5,717 |
Total revenue |  | $ | 3,301 |  |  | $ | 4,246 |  |  | $ | 10,553 |  |  | $ | 12,074 |
(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 nine months ended September 30, 2022, includes a cumulative adjustment from prior years of approximately $0.4 million decrease.
(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 nine months ended September 30, 2022, includes a cumulative adjustment from prior years of approximately $0.1 million increase.
Changes in Contract Liabilities The key components of changes in contract liabilities for the three months and nine months ended September 30, 2023 and 2022 are as follows (in thousands): SCHEDULE OF CONTRACT LIABILITY
|  | September 30, |
|  | 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 |
New contracts, net of cancellations |  |  | 794 |  |  |  | 1,556 |
Revenue recognized |  |  | (1,068 | ) |  |  | (1,320 | )
Ending balance, June 30 |  | $ | 2,623 |  |  | $ | 2,397 |
New contracts, net of cancellations |  |  | 1,046 |  |  |  | 1,950 |
Revenue recognized |  |  | (1,056 | ) |  |  | (1,766 | )
Ending balance, September 30 |  | $ | 2,613 |  |  | $ | 2,581 |
Current portion of deferred revenue is approximately $2.4 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 $0.3 and $0.9 million for the three months ended September 30, 2023 and 2022, and $0.4 and $1.1 million for the nine months ended September 30, 2023 and 2022. Changes in Accounts Receivable Our customers are billed based on fees agreed upon in each customer contract. Receivables from customers were $0.2 million at September 30, 2023 and $0.5 million at December 31, 2022. 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. An allowance of $0.3 and $0.7 million existed as of September 30, 2023 and 2022. Shipping Costs Shipping costs for product deliveries to customers are expensed as incurred and totaled approximately $0.1 million for the three months ended September 30, 2023 and 2022, and approximately $0.2 million for the nine months ended September 30, 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. | NOTE 3 - REVENUE, CONTRACT ASSETS AND CONTRACT LIABILITIES Net Revenue For the years ended December 31, 2022 and 2021, 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
|  | Year Ended December 31, |
|  | 2022 |  |  | 2021 |
Product revenue: |  |  |  |  |  |  |  |
Appliance sales to VIPs |  | $ | 7,820 |  |  | $ | 6,040 | (1)
Center revenue |  |  | 561 |  |  |  | 480 |
Total product revenue |  |  | 8,381 |  |  |  | 6,520 |
Service revenue |  |  |  |  |  |  |  |
VIP |  |  | 4,838 |  |  |  | 8,517 | (3)
Billing intelligence services |  |  | 1,170 |  |  |  | 905 | (2)
Management service revenue (includes MID) |  |  | 63 |  |  |  | 313 |
Myofunctional therapy services |  |  | 927 |  |  |  | 341 |
Sponsorship/seminar/other |  |  | 645 |  |  |  | 289 |
Total service revenue |  |  | 7,643 |  |  |  | 10,365 |
Total revenue |  | $ | 16,024 |  |  | $ | 16,885 |
(1) | 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) | Revenue from maintenance and 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 year ended December 31, 2022, includes a cumulative adjustment from prior years of approximately $0.1 million increase.
(3) | Revenue disclosed above for the year ended December 31, 2022, includes a cumulative adjustment from prior years of approximately $0.4 million decrease.
Changes in Contract Liabilities The key components of changes in contract liabilities for the years ended December 31, 2022 and 2021 are as follows (in thousands): SCHEDULE OF CONTRACT LIABILITY
|  | December 31 |
|  | 2022 |  |  | 2021 |
Beginning balance, January 1 |  | $ | 2,399 |  |  | $ | 2,938 |
New contracts, net of cancellations |  |  | 6,567 |  |  |  | 7,978 |
Revenue recognized |  |  | (5,928 | ) |  |  | (8,517 | )
Ending balance, December 31 |  | $ | 3,038 |  |  | $ | 2,399 |
Current portion of deferred revenue is approximately $2.9 million which is expected to be recognized over the next 12 months from the date of the period presented. Shipping Costs Shipping costs for product deliveries to customers are expensed as incurred and totaled approximately $0.1 million and $0.4 million for the years ended December 31, 2022 and 2021, respectively. Shipping costs for product deliveries to customers are included in cost of goods sold in the accompanying 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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