Revenue

9 Months Ended

12 Months Ended

Sep. 30, 2020

Sep. 30, 2022

18. Revenue

The following table presents the key streams of revenue for KWESST:

		Nine months ended September 30, 2020		Twelve months ended December 31, 2019

Systems	$	835,097	$	472,749
Other		26,820		36,399
	$	861,917	$	509,148

Revenue allocated to remaining performance obligations represents contracted revenue that has not yet been recognized ("contracted not yet recognized") and includes unearned revenue and amounts that will be invoiced and recognized as revenue in future periods. At September 30, 2020, KWESST's contracted not yet recognized revenue was $233,193, of which 100% of this amount is expected to be recognized over the next 12 months.

17. Revenue

a) Revenue streams

KWESST generates revenue from the sale of products to its customers.

b) Disaggregation of revenue from contracts with customers

In the following table, revenue from contacts with customers is disaggregated by primary geographical market, major products and service lines, and timing of revenue recognition.

						Nine months
		Year ended		Year ended		ended
		September 30,		September 30,		September 30,
		2022		2021		2020
*Major products / service lines*
Digitization	$	354,620	$	1,255,982	$	835,097
Non-Lethal		330,658		-		-
Training and services		34,590		-		-
Other		1,651		19,822		26,820
	$	721,519	$	1,275,804	$	861,917

*Primary geographical markets*
United States	$	389,210	$	1,238,063	$	835,097
Canada		332,309		37,741		26,820
	$	721,519	$	1,275,804	$	861,917

*Timing of revenue recognition*
Products and services transferred over time	$	389,210	$	1,238,063	$	835,097
Products transferred at a point in time		332,309		37,741		26,820
	$	721,519	$	1,275,804	$	861,917

Revenue allocated to remaining performance obligations represents contracted revenue that has not yet been recognized ("contracted not yet recognized") and includes unearned revenue and amounts that will be invoiced and recognized as revenue in future periods. At September 30, 2022, our contracted not yet recognized revenue was $625,177 (2021 - $16,545, 2020 - $233,193), of which 43% of this amount is expected to be recognized over the next 12 months with the remaining 57% expected to be recognized in 2 to 3 years.

For the year ended September 30, 2022, one customer accounted for the 41% revenue (2021 - one customer accounted for 95%, 2020 - two customers accounted for 61% and 35%, respectively).