General form of registration statement for all companies including face-amount certificate companies

REVENUE RECOGNITION

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REVENUE RECOGNITION
12 Months Ended
Dec. 31, 2021
Revenue Recognition  
REVENUE RECOGNITION

 

4. REVENUE RECOGNITION

 

The following is a summary of revenue by category (in thousands):

 

               
    Year Ended
December 31,
 
    2021     2020  
Products sales   $ 148,160     $ 133,607  
Non-recurring engineering (“NRE”)     12,527       16,007  
Product maintenance contracts     6,798       11,796  
Professional service contracts     6,786       10,814  
Software licenses     1,758       255  
Other     1,254       476  
Total revenues   $ 177,283     $ 172,955  

 

Revenue recognized at a point in time for NRE services amounted to $3.0 million and $8.1 million for the years ended December 31, 2021 and 2020, respectively. For services performed on a customer’s owned asset, since the customer controls the asset being enhanced, revenue is recognized over time as services are rendered. Revenue recognized over time for NRE services using a cost-based input method amounted to $9.5 million and $8.0 million for the years ended December 31, 2021 and 2020, respectively. The Company is allowed to bill for services performed under the contract in the event the contract is terminated.

 

The opening and closing balances of our contract asset and liability balances from contracts with customers as of December 31, 2021 and 2020 were as follows (in thousands):

 

                 
      Contracts
Assets
    Contracts
Liabilities
 
Balance as of December 31, 2020     $ 1,000     $ 7,521  
Balance as of December 31, 2021       7,673       2,902  
Change     $ 6,673     $ (4,619 )

 

Remaining performance obligations represent the revenue that is expected to be recognized in future periods related to performance obligations included in a contract that are unsatisfied, or partially satisfied, as of the end of a period. As of December 31, 2021 and 2020, deferred revenue (both current and noncurrent) of $2.9 million and $7.5 million, respectively, represents the Company’s remaining performance obligations, of which $2.5 million and $6.1 million, respectively, is expected to be recognized within one year, with the remainder to be recognized thereafter.

 

Revenues for the years ended December 31, 2021 and 2020, include the following (in thousands):

 

               
    Year Ended
December 31,
 
    2021     2020  
Amounts included in the beginning of year contract liability balance   $ 6,143     $ 3,576  

 

 

Warranty Liabilities

 

Information regarding the changes in the Company’s product warranty liabilities for the years ended December 31, 2021 and 2020 is as follows (in thousands):

 

                 
      December 31,  
      2021     2020  
Balance, beginning of period     $ 1,019     $ 981  
Accruals       957       826  
Settlements       (691 )     (788 )
Balance, end of period     $ 1,285     $ 1,019