Annual report pursuant to Section 13 and 15(d)

REVENUE RECOGNITION

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REVENUE RECOGNITION
 12 Months Ended
Dec. 31, 2020
Revenue From Contract With Customer [Abstract]  
REVENUE RECOGNITION

NOTE 3. REVENUE RECOGNITION

 

Revenue recognition. We generate revenue primarily from the licensing of our intellectual property. We recognize revenue under recurring fee license contracts monthly as we satisfy our performance obligation, which consists of granting the customer the right to use our intellectual property. Amounts billed are determined based on flat rates or usage rates stipulated in the customer contract.

 

Disaggregation of revenue

 

The following table disaggregates our revenue by geographic location for the years ended December 31, 2020 and 2019:

 

 

 

2020

 

 

2019

 

North America and Caribbean

 

$

5,757,143

 

 

$

15,387,519

 

Europe, Middle East and Africa

 

 

4,473,173

 

 

 

5,913,477

 

Total revenue

 

$

10,230,316

 

 

$

21,300,996

 

 

Contract liabilities. Amounts billed and cash received in advance of performance obligations fulfilled are recorded as contract liabilities and recognized as performance obligations are fulfilled.

 

Contract Assets. The Company’s contract assets consist solely of unbilled receivables which are recorded when the Company recognizes revenue in advance of billings. Unbilled receivables totaled $502,860 and $352,899 for the years ended December 31, 2020 and 2019 and are included in the accounts receivable balance in the accompanying balance sheets.