Quarterly report pursuant to Section 13 or 15(d)

Revenue Recognition (Notes)

v3.20.2
Revenue Recognition (Notes)
 3 Months Ended
Jun. 30, 2020
Revenue from Contract with Customer [Abstract]  
Revenue from Contract with Customer [Text Block]
Revenue Recognition and Deferred Revenue

The Company records revenue based on a five-step model in accordance with ASC Topic 606, Revenue From Contracts With Customers (“ASC 606"). The Company's revenue is derived from the sale of products, software, and services identified in contracts. A contract exists when both parties have an approved agreement that creates enforceable rights and obligations, identifies performance obligations and payment terms and has commercial substance. The Company records revenue from these contracts when control of the products or services transfer to the customer. The amount of revenue to be recognized is based upon the consideration, including the impact of any variable consideration, that the Company expects to be entitled to receive in exchange for these products and services.

Disaggregation of revenue

The following table disaggregates our revenue by major source:
(in thousands)
Three months ended June 30,
 
2020
 
2019
Revenue:
 
 
 
    Products
$
6,198

 
$
7,815

    Software
17

 
19

    Services
1,135

 
1,168

Total revenue
$
7,350

 
$
9,002



The following is the expected future revenue recognition timing of deferred revenue as of June 30, 2020:
(in thousands)
< 1 year
 
1-2 years
 
> 2 years
Deferred Revenue
$
955

 
$
109

 
$
76



During each of the three months ended June 30, 2020, and June 30, 2019, the Company recognized $0.4 million of revenue related to contract liabilities at the beginning of the periods.

The Company allows certain customers to return unused product under specified terms and conditions.  The Company estimates product returns based on historical sales and return trends and records a corresponding refund liability.  The refund liability is included within Accrued expenses on the accompanying Condensed Consolidated Balance Sheets.  Additionally, the Company records an asset based on historical experience for the amount of product we expect to return to inventory as a result of the return, which is recorded in Prepaid and other current assets in the Condensed Consolidated Balance Sheets.  The gross product return asset was $0.1 million at both June 30, 2020, and March 31, 2020.