REVENUE FROM CONTRACTS FROM CUSTOMERS |
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| REVENUE FROM CONTRACTS FROM CUSTOMERS | NOTE 4 – REVENUE FROM CONTRACTS FROM CUSTOMERS
Customer Concentration
During the three months ended December 31, 2022, eight customers accounted for approximately 42% of our revenues. During the three months ended December 31, 2021, eight customers also accounted for approximately 38% of our revenues. None of the customers individually accounted for over 10% of our revenue during the three months ended December 31, 2022 and 2021.
Deferred Revenue
Deferred revenue was $74,000 at December 31, 2022. The deferred revenue is expected to be earned within 12 months of the balance sheet date.
Changes in deferred revenue were as follows:
We internally report our revenue using two categories. The first, “vCISO Services”, captures the revenue for the Chief Information Security Officer services that we provide to our clients on a “virtual” or outsourced basis, thus the acronym “vCISO”. Services delivered by SideChannel through our team of vCISOs include assessing the cybersecurity risk profile, implementing policies and programs to mitigate risks, and managing the day-to-day tasks to ensure compliance with the adopted cybersecurity framework. Most of our clients use our vCISO services.
Our second revenue category encompasses an array of “Cybersecurity Software and Services” that our clients deem necessary to protect their digital assets. These include cybersecurity software owned by SideChannel and software sourced from third parties. SideChannel earns commissions on third-party software sales which it recognizes as revenue. Cybersecurity services are also delivered directly by SideChannel employees and indirectly by third party service providers.
The table below reflects the revenue by category for the three months ended December 31, 2022 and 2021:
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