|
Contract balances For the years ended December 31, 2021, 2020 and 2019, the Company did not recognize material bad-debt expense. Contract assets consist of costs and estimated earnings in excess of billings on uncompleted engineering contracts. The balance was entirely from the ESS Metron acquisition and was $9.9 million and $0 as of December 31, 2021 and 2020, respectively.
The Company’s contract liabilities primarily relate to upfront payments and consideration received from customers for data center hosting, billings in excess of costs and estimated earnings on uncompleted engineering contracts and the upfront license fee generated from our legacy animal health business. The table below presents changes in the total deferred revenue liability, for the years ended December 31, 2021 and 2020 (in thousands):
|
|
|
Years Ended December 31, |
| |
|
|
2021 |
|
|
2020 |
| |
Beginning balance |
|
$ |
776 |
|
|
$ |
873 |
| |
Acquired contract balances |
|
|
34,424 |
|
|
|
- |
| |
Revenue recognized from acquired contract balances |
|
|
(1,500 |
) |
|
|
- |
| |
Termination of an acquired customer contract |
|
|
(5,700 |
) |
|
|
- |
| |
Revenue recognized that was included in the beginning balance |
|
|
(97 |
) |
|
|
(97 |
) | |
Ending balance |
|
$ |
27,903 |
|
|
$ |
776 |
|
|