Quarterly report pursuant to Section 13 or 15(d)

Revenue Recognition

v3.21.2
Revenue Recognition
 9 Months Ended
Sep. 30, 2021
Revenue from Contract with Customer [Abstract]  
Revenue Recognition
NOTE 3 – REVENUE RECOGNITION
The Company recognized all deferred revenue related to the connectivity performance obligations that were not fully satisfied in previous periods in the amount of $7.1 million and
 $7.8 
million for the three and nine months ended September 30, 2021, respectively. The Company does not have material unfulfilled performance obligation balances for contracts with an original length greater than one year in any periods presented. Additionally, the Company does not have material costs related to obtaining a contract with amortization periods greater than one year for any period presented. Th
e

Company applies ASC 606 utilizing the following allowable exemptions or practical expedients: 
 
  •  
Exemption to not disclose the unfulfilled performance obligation balance for contracts with an original length of one year or less.
 
  •  
Practical expedient to recognize the incremental costs of obtaining a contract as an expense when incurred if the amortization period of the asset that the entity otherwise would have recognized is one year or less.
 
  •  
Election to present revenue net of sales taxes and other similar taxes.
 
  •  
Election from recognizing shipping and handling activities as a separate performance obligation.
 
  •  
Practical expedient not requiring the entity to adjust the promised amount of consideration for the effects of a significant financing component if the entity expects, at contract inception, that the period between when the entity transfers a promised good or service to a customer and when the customer pays for that good or service will be one year or less.
 
Contract Balances
Deferred revenue as of September 30, 2021 and December 31, 2020, was $6.8 million and $7.8 
million, respectively, and primarily relates to revenue that is recognized over time for Connectivity monthly recurring charges, the changes in balance of which are related to the satisfaction or partial satisfaction of these contracts. The balance also contains a deferral for goods that are
in-transit
at period end for which control transfers to the customer upon delivery. All of the December 31, 2020, balance was recognized as revenue during the period ended September 30, 2021.
Disaggregated Revenue Information
The Company views the following disaggregated disclosures as useful to understand the composition of revenue recognized during the respective three-month and nine-month reporting periods:
 
    
Three months ended
September 30,
     
Nine months ended
September 30,
  
(in ‘000)
   
2021
     
2020
     
2021
     
2020
  
Connectivity*
    $ 40,738      $ 37,932      $ 122,444      $ 111,583  
Hardware Sales
      19,221        9,345        40,602        23,276  
Hardware Sales -
bill-and-hold
      229        2,476        3,451        5,908  
Deployment services, professional services and other
      7,690        5,504        17,422        15,530  
    
 
 
     
 
 
     
 
 
     
 
 
  
Total
   
$
67,878
 
   
$
55,257
 
   
$
183,919
 
   
$
156,297
 
    
 
 
     
 
 
     
 
 
     
 
 
  
*
Includes connectivity-related revenue from
IoT
Connectivity and IoT Solutions
Significant Customer
The Company has one customer representing 28% and 18% of the Company’s total revenue for the three months ending September 30, 2021 and September 30, 2020, respectively, and 21% and 16% of the Company’s total revenue for the nine months ending September 30, 2021, and September 30, 2020, respectively.