Quarterly report pursuant to Section 13 or 15(d)

Note 6 - Revenue

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Note 6 - Revenue
 6 Months Ended
Jun. 30, 2024
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.

 

All pharmacy benefit manager (“PBM”) fees, including direct and indirect remuneration (“DIR”) fees, are charged at the time of the settlement of a pharmacy claim. 

 

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):

 

   

Three Months Ended June 30,

  
   

2024

    

2023

  

Sales of products, net:

                

Pharmacy prescription and other revenue, net of PBM fees

   $ 10,521     $ -  

e-Commerce revenue

     3,512       2,957  

Sub total

     14,033       2,957  

Revenues from services:

                

Pharmacy 340B contract revenue

     2,956       -  
                 

Revenues, net

   $ 16,989     $ 2,957  

  

   

Six Months Ended June 30,

  
   

2024

    

2023

  

Sales of products, net:

                

Pharmacy prescription and other revenue, net of PBM fees

   $ 21,845     $ -  

e-Commerce revenue

     6,377       5,834  

Sub total

     28,222       5,834  

Revenues from services:

                

Pharmacy 340B contract revenue

     6,260       -  
                 

Revenues, net

   $ 34,482     $ 5,834