Annual report pursuant to Section 13 and 15(d)

Revenue Recognition and Deferred Revenue (Notes)

v3.21.1
Revenue Recognition and Deferred Revenue (Notes)
 12 Months Ended
Mar. 31, 2021
Revenue Recognition and Deferred Revenue [Abstract]  
Revenue from Contract with Customer Revenue Recognition and Deferred Revenue
The Company records revenue based on a five-step model in accordance with 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) Twelve months ended March 31,
  2021 2020
Revenue:
    Products $ 24,793  $ 25,100 
    Software 188  282 
    Services 4,966  4,574 
Total revenue $ 29,947  $ 29,956 
The following is the expected future revenue recognition timing of deferred revenue as of March 31, 2021:
< 1 year 1-2 years > 2 years
Deferred Revenue $ 874  $ 79  $ 26 
During the fiscal years ended March 31, 2021, and 2020, the Company recognized $1.1 million and $1.2 million of revenue, respectively, related to contract liabilities included in deferred revenue 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 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 Consolidated Balance Sheets.  The gross product return asset was $0.1 million at both March 31, 2021 and March 31, 2020. The product returns liability was $0.1 million and $0.2 million at March 31, 2021 and March 31, 2020, respectively.