The ONE Group Hospitality, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Revenue recognition

Revenue recognition

12 Months Ended

Dec. 31, 2019

Note 13 – Revenue recognition

The following table provides information about contract receivables and liabilities from contracts with customers, which include deferred license revenue, deferred gift card revenue and the Konavore rewards program (in thousands):


	December 31,		December 31,
	2019		2018
Receivables (1)	$	250	$	174
Deferred license revenue (2)		1,368		1,179
Deferred gift card and gift certificate revenue (3)		3,210		491
Konavore rewards program (4)	$	84	$	—

(1)

Receivables are included in accounts receivable on the consolidated balance sheets.

(2)

Includes the current and long-term portion of deferred license revenue.

(3)

Deferred gift card revenue is included in deferred gift card revenue and other on the consolidated balance sheets.

(4)

Konavore rewards program is included in accrued expenses on the consolidated balance sheets.

Significant changes in deferred license revenue and deferred gift card revenue for the years ended December 31, 2019 and 2018 are as follows (in thousands):


	December 31,		December 31,
	2019		2018
Revenue recognized from deferred license revenue	$	483	$	1,019
Revenue recognized from deferred gift card revenue		2,145		1,249
Deferred gift card revenue acquired in business combination	$	2,277	$	—

As of December 31, 2019, the estimated deferred license revenue to be recognized in the future related to performance obligations that are unsatisfied as of December 31, 2019 were as follows for each year ending (in thousands):


2020	$	205
2021		205
2022		181
2023		276
2024		116
Thereafter		385
Total future estimated deferred license revenue	$	1,368