Quarterly report pursuant to Section 13 or 15(d)

REVENUE RECOGNITION

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REVENUE RECOGNITION
 6 Months Ended
Jun. 30, 2022
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 following periods:

 

 

 

Three Months
Ended June 30,

 

 

Six Months
Ended June 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

North America and Caribbean

 

$

2,683,756

 

 

$

2,465,741

 

 

$

4,975,669

 

 

$

4,967,723

 

Europe, Middle East and Africa

 

 

2,992,439

 

 

 

2,283,589

 

 

 

6,619,125

 

 

 

4,064,616

 

Total revenue

 

$

5,676,195

 

 

$

4,749,330

 

 

$

11,594,794

 

 

$

9,032,339

 

 

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 $945,867 and $771,294 as of June 30, 2022 and December 31, 2021, respectively, and are included in the accounts receivable balance in the accompanying condensed consolidated balance sheets.