NOTE 9: DEFERRED REVENUES AND CUSTOMERS ADVANCES

Deferred revenues and customer advances consist of deferred cloud-based monitoring services, communication services, warranty extension services and advance payments received from customers for the Company’s products and other services. Deferred revenues and customer advances are classified as short-term and long-term deferred revenues and customer advances based on the period in which revenues are expected to be recognized.

Significant changes in the balances of deferred revenue and customer advances during the period are as follows:

	Three Months Ended June 30,						Six Months Ended June 30,
	2026			2025			2026			2025
Balance, at the beginning of the period	$	352,489		$	320,140		$	363,699		$	371,919
Revenue recognized		(26,777	)		(65,473	)		(70,014	)		(133,914	)
Increase in deferred revenues and customer advances		51,298			31,238			83,325			47,900
Balance, at the end of the period		377,010			285,905			377,010			285,905
Less current portion		(49,326	)		(37,174	)		(49,326	)		(37,174	)
Long-term portion	$	327,684		$	248,731		$	327,684		$	248,731

The following table includes estimated revenues that the Company expects to be recognized in the future, related to performance obligations that are unsatisfied (or partially unsatisfied) as of June 30, 2026:

2026	$	45,006
2027		29,808
2028		31,858
2029		27,460
2030		17,744
Thereafter		225,134
Total deferred revenues	$	377,010