Quarterly report pursuant to Section 13 or 15(d)

C. REVENUE

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C. REVENUE
 9 Months Ended
Sep. 30, 2019
Revenue from Contract with Customer [Abstract]  
REVENUE

NOTE C– REVENUE

 

The following table presents the Company’s product and recurring revenues disaggregated by industry for the three months ended September 30, 2019.

   

    Hospitality     Education     Multiple
Dwelling Units		     Government     Total  
Product   $ 1,764,778     $ 155,354     $ 59,661     $ 15,995     $ 1,995,788  
Recurring     149,868       51,321       1,666       –       202,855  
    $ 1,914,646     $ 206,675     $ 61,327     $ 15,995     $ 2,198,643  

 

The following table presents the Company’s product and recurring revenues disaggregated by industry for the nine months ended September 30, 2019.

 

    Hospitality     Education     Multiple
Dwelling Units		     Government     Total  
Product   $ 5,786,068     $ 863,507     $ 371,711     $ 942,063     $ 7,963,349  
Recurring     455,364       92,370       20,797       –       568,531  
    $ 6,241,432     $ 955,877     $ 392,508     $ 942,063     $ 8,531,880  

 

The following table presents the Company’s product and recurring revenues disaggregated by industry for the three months ended September 30, 2018.

 

    Hospitality     Education     Multiple Dwelling Units     Government     Total  
Product   $ 1,222,543     $ (4,159 )   $ 100,604     $ 58     $ 1,319,046  
Recurring     103,157       40,344       1,469       –       144,970  
    $ 1,325,700     $ 36,185     $ 102,073     $ 58     $ 1,464,016  

 

The following table presents the Company’s product and recurring revenues disaggregated by industry for the nine months ended September 30, 2018.

 

    Hospitality     Education     Multiple Dwelling Units     Government     Total  
Product   $ 4,755,219     $ 647,079     $ 166,454     $ 74,757     $ 5,643,509  
Recurring     330,652       58,449       10,764       –       399,865  
    $ 5,085,871     $ 705,528     $ 177,218     $ 74,757     $ 6,043,374  

 

Sales taxes and other usage-based taxes are excluded from revenues.

 

Remaining performance obligations

 

As of September 30, 2019, the aggregate amount of the transaction price allocated to remaining performance obligations was approximately $0.8 million. Except for support services, the Company expects to recognize 100% of the remaining performance obligations over the next six months.

 

Contract assets and liabilities

 

    September 30,
2019		     December 31,
2018		     Variance  
Contract assets   $ 423,303     $ 314,749     $ 108,554  
Contract liabilities     1,120,975       1,232,623       (111,648 )
Net contract liabilities   $ 697,672     $ 917,874     $ (220,202 )

 

Contracts are billed in accordance with the terms and conditions, either at periodic intervals or upon substantial completion. This can result in billings occurring subsequent to revenue recognition, resulting in contract assets. Contract assets are presented as current assets in the Condensed Consolidated Balance Sheet. There were $0.3 million of costs incurred to fulfill contracts in the closing balance of contract assets.

 

Often, the Company will require customers to pay a deposit upon contract signing that will be applied against work performed or products shipped. In addition, the Company will often invoice the full term of support at the start of the support period. Billings that occur prior to revenue recognition result in contract liabilities. The change in the contract liability balance during the nine month period ended September 30, 2019 is the result of cash payments received and billing in advance of satisfying performance obligations.