v3.26.3
REVENUE
 9 Months Ended
Sep. 30, 2026
Revenue from Contract with Customer [Abstract]  
REVENUE

NOTE 12—REVENUE

 

Revenue from the prepayment of monitoring fees (generally paid twelve months in advance) are recorded as deferred revenue upon receipt of payment from the customer and then amortized to revenue over the monitoring service period. This method provides a faithful depiction of the transfer of services as it aligns the recognition of revenue with the period in which the monitoring services are provided. By deferring the revenue and recognizing it over the service period, the financial statements accurately reflect the company’s performance and obligations to its customers.

 

 

The following table disaggregates the Company’s revenue for the nine- and three-month periods ended September 30, 2026 and 2025 (in thousands):

 

   Hardware   Monitoring   Total 
Nine months ended September 30, 2026:               
PG Segment  $2,676   $4,216   $6,892 
CP Segment   239    176    415 
Total Revenue  $2,915   $4,392   $7,307 

 

   Hardware   Monitoring   Total 
Nine months ended September 30, 2025:               
PG Segment  $4,542   $3,965   $8,507 
CP Segment   410    184    594 
Total Revenue  $4,952   $4,149   $9,101 

 

The IS segment had no revenue for the nine months ended September 30, 2026 as operations were in the pre-revenue stage.

 

   Hardware   Monitoring   Total 
Three months ended September 30, 2026:               
PG Segment  $950   $1,492   $2,442 
CP Segment   91    58    149 
Total Revenue  $1,041   $1,550   $2,591 

 

   Hardware   Monitoring   Total 
Three months ended September 30, 2025:               
PG Segment  $761   $1,499   $2,260 
CP Segment   157    61    218 
Total Revenue  $918   $1,560   $2,478 

 

The IS segment had no revenue for the three months ended September 30, 2026 as operations were in the pre-revenue stage.

 

Deferred revenue activity for the nine months ended September 30, 2026 can be seen in the table below (in thousands):

 

   Hardware   Monitoring   Total 
Balance at December 31, 2025  $168   $3,241   $3,409 
Additions during the period   —    4,615    4,615 
Assumed in the Gen-Tracker Acquisition (see Note 14)   —    590    590 
Recognized as revenue   (168)   (4,392)   (4,560)
Balance at September 30, 2026  $—   $4,054   $4,054 
                
Amounts to be recognized as revenue in the twelve-month period ending:               
September 30, 2027  $—    3,643    3,643 
September 30, 2028   —    399    399 
September 30, 2029 and thereafter   —    12    12 
Total  $—    4,054    4,054 

 

The amount of hardware revenue recognized during the nine months ended September 30, 2026 that was included in deferred revenue at the beginning of the fiscal year was $168,000. The amount of monitoring revenue during the nine months ended September 30, 2026 that was included in deferred revenue at the beginning of the fiscal year was $2,797,000.

 

 

The following table provides a reconciliation of the Company’s hardware revenue for the nine- and three-month periods ended September 30, 2026 and 2025 (in thousands):

 

Reconciliation of Hardware Revenue  2026   2025   2026   2025 
  

Nine months ended

September 30,

  

Three months ended

September 30,

 
Reconciliation of Hardware Revenue  2026   2025   2026   2025 
Amortization of deferred revenue  $168   $800   $5   $215 
Sales of custom designed units and related accessories   94    58    17    — 
Hardware sales   2,128    3,708    766    548 
Other accessories, services, shipping and miscellaneous charges   525    386    253    155 
Total hardware revenue  $2,915   $4,952   $1,041   $918 

 

Deferred COGS relate only to the sale of equipment. Deferred COGS activity for the nine-month period ended September 30, 2026 can be seen in the table below (in thousands):

 

      
Balance at December 31, 2025  $70 
Additions, net of adjustments, during the period   — 
Recognized as COGS   (70)
Balance at September 30, 2026  $— 
      
Amounts to be recognized as COGS in the twelve-month-period ending:     
September 30, 2027  $— 

 

The following table provides a reconciliation of the Company’s COGS expense for the nine- and three-month periods ended September 30, 2026 and 2025 (in thousands):

 

Reconciliation of COGS Expense  2026   2025   2026   2025 
  

Nine months ended

September 30,

  

Three months ended

September 30,

 
Reconciliation of COGS Expense  2026   2025   2026   2025 
Amortization of deferred COGS  $70   $342   $2   $91 
COGS of custom designed units and related accessories   34    16    7    — 
COGS of hardware sales   771    1,335    266    246 
Data costs for monitoring   219    219    73    73 
Other COGS of accessories, services, shipping and miscellaneous charges   291    279    156    122 
Total COGS expense  $1,385   $2,191   $504   $533 

 

The following table provides a reconciliation of the Company’s sales commissions contract assets for the nine-month period ended September 30, 2026 (in thousands):

 

   Hardware   Monitoring   Total 
Balance at December 31, 2025  $16   $148   $164 
Additions during the period   —    39    39 
Amortization of sales commissions   (16)   (50)   (66)
Balance at September 30, 2026  $—    137    137 

 

The capitalized sales commissions are included in other current assets ($58,000) and other assets ($79,000) in the Company’s unaudited condensed consolidated balance sheet at September 30, 2026. The capitalized sales commissions are included in other current assets ($76,000) and other assets ($88,000) in the Company’s condensed consolidated balance sheet at December 31, 2025.

 

 

Amounts to be recognized as sales commission expense in the twelve-month period ending (in thousands):

 

      
September 30, 2027  $58 
September 30, 2028   46 
September 30, 2029 and thereafter   33 
Total  $137