Annual report pursuant to Section 13 and 15(d)

Note 6 - Revenue

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Note 6 - Revenue
 12 Months Ended
Dec. 31, 2023
Notes to Financial Statements  
Revenue from Contract with Customer [Text Block]

Note 6. Revenue

 

e-Commerce revenue:

 

The Company recognizes revenue from satellite services when earned, as services are rendered or delivered to customers. Equipment sales revenue is recognized when the equipment is delivered to and accepted by the customer. Only equipment sales are subject to warranty. Historically, the Company has not incurred significant expenses for warranties. Equipment sales which have been prepaid, before the goods are shipped are recorded as contract liabilities and once shipped and accepted by the customer is recognized as revenue. The Company also records as contract liabilities, certain annual plans for airtime, which are paid in advance. Once airtime services are incurred, they are recognized as revenue. Unbilled revenue is recognized for airtime plans whereby the customer is invoiced for its data usage the following month after services are incurred.

 

Healthcare revenue:

 

The Company recognizes pharmacy revenue and 340B contract revenue from dispensing prescription drugs at the time the drugs are physically delivered to a customer or when a customer picks up their prescription or purchases merchandise at the store, which is the point in time when control transfers to the customer. Each prescription claim is considered an arrangement with the customer and is a separate performance obligation. Payments are received directly from the customer at the point of sale, or the customers’ insurance provider is billed electronically. For third-party medical insurance and other claims, authorization is obtained to ensure payment from the customer’s insurance provider before the medication is dispensed to the customer. Authorization is obtained for these sales electronically and a corresponding authorization number is issued by the customers’ insurance provider.

 

The Company accrues an estimate of pharmacy benefit manager (“PBM”) fees, including direct and indirect remuneration (“DIR”) fees, which are assessed or expected to be assessed by payers at some point after adjudication of a claim, as a reduction of revenue at the time revenue is recognized. Changes in the estimate of such fees are recorded as an adjustment to revenue when the change becomes known.

 

The Company recognizes COVID-19 testing revenue when the tests are performed and results are delivered to the customer. Each test is considered an arrangement with the customer and is a separate performance obligation. Payment is generally received in advance from the customer.

 

      The following table disaggregates net revenues by categories (in thousands):

 

   

For the Twelve Months Ended December 31, 2023

  
   

e-Commerce Operations

    

Healthcare Operations

    

Total

  

Sales of products, net

                        

Prescription revenue, net of PBM fees

   $ -     $ 21,412     $ 21,412  

e-Commerce revenue

   $ 10,977     $ -     $ 10,977  

Subtotal

   $ 10,977     $ 21,412     $ 32,389  

Revenues from services:

                        

Pharmacy 340B contract revenue

   $ -     $ 5,367     $ 5,367  

Revenues, net

   $ 10,977     $ 26,779     $ 37,756  

 

   

For the Twelve Months Ended December 31, 2022

  
   

e-Commerce Operations

    

Healthcare Operations

    

Total

  

Sales of products, net

                        

Prescription revenue, net of PBM fees

   $ -     $ -     $ -  

e-Commerce revenue

     11,710       -       11,710  

Subtotal

     11,710       -     $ 11,710  

Revenues from services:

                        

Pharmacy 340B contract revenue

     -       -     $ -  

Revenues, net

   $ 11,710     $ -     $ 11,710