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, 2020

Note 12 – 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,
	2020		2019
Receivables (1)	$	125	$	250
Deferred license revenue (2)		1,160		1,368
Deferred gift card and gift certificate revenue (3)		1,945		3,210
Konavore rewards program (4)	$	102	$	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, 2020 and 2019 are as follows (in thousands):


	December 31,		December 31,
	2020		2019
Revenue recognized from deferred license revenue	$	206	$	483
Revenue recognized from deferred gift card revenue		1,904		2,145
Deferred gift card revenue acquired in Kona Grill acquisition	$	—	$	2,277

As of December 31, 2020, the estimated deferred license revenue to be recognized in the future related to performance obligations that are unsatisfied as of December 31, 2020 were as follows for each year ending (in thousands):


2021	$	207
2022		180
2023		169
2024		134
2025		133
Thereafter		337
Total future estimated deferred license revenue	$	1,160