| Disaggregation of Revenue |
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, and 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
June 30,
2026 |
|
|
Six Months Ended
June 30,
2026 |
|
|
Three Months Ended
June 30,
2025 |
|
|
Six Months Ended
June 30,
2025 |
|
| Subscription revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Software, License & Maintenance Contracts(1) |
|
$ |
1,093 |
|
|
$ |
2,027 |
|
|
$ |
1,175 |
|
|
$ |
2,386 |
|
| Total subscription revenue |
|
$ |
1,093 |
|
|
$ |
2,027 |
|
|
$ |
1,175 |
|
|
$ |
2,386 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Non-subscription revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Professional services(2) |
|
$ |
63 |
|
|
$ |
77 |
|
|
$ |
20 |
|
|
$ |
33 |
|
| Hardware(3) |
|
|
12 |
|
|
|
14 |
|
|
|
28 |
|
|
|
28 |
|
| Managed advertising(4) |
|
|
435 |
|
|
|
435 |
|
|
|
- |
|
|
|
- |
|
| Growth marketing advisory(5) |
|
|
91 |
|
|
|
91 |
|
|
|
- |
|
|
|
- |
|
| Total non-subscription revenue |
|
$ |
601 |
|
|
$ |
617 |
|
|
$ |
48 |
|
|
$ |
61 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Revenue |
|
$ |
1,694 |
|
|
$ |
2,644 |
|
|
$ |
1,223 |
|
|
$ |
2,447 |
|
| |
|
Three Months Ended
June 30,
2026 |
|
|
Six Months Ended
June 30,
2026 |
|
|
Three Months Ended
June 30,
2025 |
|
|
Six Months Ended
June 30,
2025 |
|
| Revenue recognized over time(1)(2)(4)(5) |
|
$ |
1,682 |
|
|
$ |
2,630 |
|
|
$ |
1,195 |
|
|
$ |
2,419 |
|
| Revenue recognized at point in time(3) |
|
|
12 |
|
|
|
14 |
|
|
|
28 |
|
|
|
28 |
|
| |
|
$ |
1,694 |
|
|
$ |
2,644 |
|
|
$ |
1,223 |
|
|
$ |
2,447 |
|
| Geographic area |
|
Three Months Ended
June 30,
2026 |
|
|
Six Months Ended
June 30,
2026 |
|
|
Three Months Ended
June 30,
2025 |
|
|
Six Months Ended
June 30,
2025 |
|
| United States |
|
$ |
1,001 |
|
|
$ |
1,941 |
|
|
$ |
1,199 |
|
|
$ |
2,396 |
|
| Canada |
|
|
4 |
|
|
|
14 |
|
|
|
24 |
|
|
|
51 |
|
| Australia |
|
|
689 |
|
|
|
689 |
|
|
|
- |
|
|
|
- |
|
| Total |
|
$ |
1,694 |
|
|
$ |
2,644 |
|
|
$ |
1,223 |
|
|
$ |
2,447 |
|
| (1) |
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. Additionally, it also includes
access to technology platform and search-engine optimization solutions provided to customers. |
| (2) |
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. |
| (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. |
| (4) |
Managed advertising services represent a series of distinct services that are substantially the same and have the same pattern of transfer to the customer. Revenue from these services is recognized over time because the customer simultaneously receives and consumes the benefits as the Company performs. |
| (5) |
Growth marketing advisory, which includes website and network development and its related services, revenue is recognized over time when the applicable criteria for over-time recognition are met, primarily where the services performed create no alternative use to the Company and the Company has an enforceable right to payment for work completed to date. |
|