Company: AWRE
Filing Date: 2025-03-13
Form Type: 10-K
Source: 0000950170-25-038714
Chunk: 116

Company: AWARE INC /MA/
Filing Date: 2025-03-13
Form: 10-K
Item: Item 8
Chunk 116
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 $
          1,080

          Year ended December 31, 2023

          Contract Assets:

          Unbilled receivables
           
          $
          2,929

          $
          4,356

          $
          (5,884
          )
           
          $
          1,401

          Balance atBeginningof period

          Billings

          RevenueRecognized

          Balance atEnd ofPeriod

          Year ended December 31, 2024

          Contract Liabilities:

          Deferred revenue
           
          $
          5,537

          $
          8,203

          $
          (8,577
          )
           
          $
          5,163

          Year ended December 31, 2023

          Contract Liabilities:

          Deferred revenue
           
          $
          3,733

          $
          9,478

          $
          (7,674
          )
           
          $
          5,537

40

Remaining Performance ObligationsRemaining performance obligations represent the transaction price from contracts for which work has not been performed or goods and services have not been delivered. We expect to recognize revenue on approximately 97% of the remaining performance obligations over the next 12 months, with the remainder recognized thereafter. The aggregate amount of the transaction price allocated to remaining performance obligations with a duration greater than one year, comprised of software maintenance contracts, was $0.3 million as of December 31, 2024.  Contract CostsWe recognize other long-term assets for the incremental costs of obtaining a contract with a customer if we expect the benefit of those costs to be longer than one year. We have determined that certain sales commissions meet the requirements to be capitalized, and we amortize these costs on a consistent basis with the pattern of transfer of the goods and services in the contract. Total capitalized costs to obtain a contract were immaterial during the periods presented and are included in other current and long-term assets on our consolidated balance sheets.We apply a practical expedient to expense costs as incurred for costs to obtain a contract when the amortization period is one year or less. These costs include sales commissions on software maintenance contracts with a contract period of one year or less as sales commissions paid on contract renewals are commensurate with those paid on the initial contract.Income Taxes – We compute deferred income taxes based on the differences between the financial statement and tax basis of assets and liabilities using enacted rates in effect in the years in which the