NOTE 3 – Disaggregation of Revenue
The Company recognizes revenue when control is transferred of the promised products or services to its customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those products or services. The Company derives revenue from software as a service, design and implementation services for its enterprise apps solutions systems, professional services for work performed in conjunction with its systems, and sale of hardware.
Revenues consisted of the following (in thousands):
| Schedule of disaggregation of revenue |
|
|
|
|
|
|
|
|
| |
|
Three Months Ended
March 31,
2026 |
|
|
Three Months Ended
March 31,
2025 |
|
| Subscription revenue |
|
|
|
|
|
|
|
|
| Software, License & Maintenance Contracts |
|
$ |
934 |
|
|
$ |
1,211 |
|
| Total subscription revenue |
|
$ |
934 |
|
|
$ |
1,211 |
|
| |
|
|
|
|
|
|
|
|
| Non-subscription revenue |
|
|
|
|
|
|
|
|
| Professional services |
|
$ |
14 |
|
|
$ |
13 |
|
| Hardware |
|
$ |
2 |
|
|
$ |
- |
|
| Total non-subscription revenue |
|
$ |
16 |
|
|
$ |
13 |
|
| |
|
|
|
|
|
|
|
|
| Total Revenue |
|
$ |
950 |
|
|
$ |
1,224 |
|
| |
|
Three Months Ended
March 31,
2026 |
|
|
Three Months Ended
March 31,
2025 |
|
| Revenue recognized over time(1)(2) |
|
$ |
948 |
|
|
$ |
1,224 |
|
| Revenue
recognized at point in time(3) |
|
$ |
2 |
|
|
$ |
- |
|
| |
|
$ |
950 |
|
|
$ |
1,224 |
|
| (1) |
Professional services are also contracted on the fixed fee and time and materials basis. Fixed fees are paid monthly, in phases, or upon acceptance of deliverables. The Company has generally elected the practical expedient to recognize revenue for the right to invoice because the Company’s right to consideration corresponds directly with the value to the customer of the performance completed to date. |
| (2) |
Software As A Service Subscription Revenue’s performance obligation is satisfied evenly over the service period using a time-based measure because the Company is providing continuous access to its service and service is recognized over time. |
| (3) |
Hardware revenue is recognized at a point in time when the control over the goods transfers to the customer - upon delivery to the customers. |
|