MIND TECHNOLOGY, INC Revenue Disclosure

3. Revenue from Contracts with Customers

 

The following table presents revenue from contracts with customers disaggregated by timing of revenue recognition:

 

		Twelve Months Ended January 31,
		2026				2025
		(in thousands)
Total revenue recognized at a point in time		$	39,606			$	45,189
Total revenue recognized over time		$	1,341			$	1,674
Total revenue from contracts with customers		$	40,947			$	46,863

 

The following table presents revenue from contracts with customers disaggregated by geography, based on the location of our customers:

 

		Twelve Months Ended January 31,
		2026				2025
Revenue from contracts with customers:		(in thousands)
United States		$	3,005			$	2,478
China			10,897				17,720
Norway			21,110				21,956
Turkey			2,116				634
Singapore			—				366
Japan			1,121				340
Other			2,698				3,369
Total revenue from contracts with customers		$	40,947			$	46,863

 

Performance Obligations

 

The revenue from products manufactured and sold by our Seamap business is generally recognized at a point in time, or when the customer takes possession of the product, based on the terms and conditions stipulated in our contracts with customers. However, from time to time our Seamap business provides repair and maintenance services, or performs upgrades, on customer-owned equipment in which case revenue is recognized over time. In addition, our Seamap business provides annual Software Maintenance Agreements (“SMA”) to customers who have an active license for software embedded in Seamap products. The revenue from SMA is recognized over time, with the total value of the SMA amortized in equal monthly amounts over the life of the contract. The duration of SMA contracts is one year or less. We do not have elements of variable consideration within these contracts.

 

As of  January 31, 2026 and January 31, 2025, there were no significant outstanding liability balances for refunds or returns due to the nature of our contracts and the services and products we provide. Our warranties are limited to assurance warranties that are of a standard length and are not considered to be material rights. For fiscal 2026 and fiscal 2025, we did not recognize revenue from performance obligations satisfied in a prior periods.

 

Contract Balances

 

Prepayments and deferred revenue on SMAs have a significant impact our contract liabilities. Considering the products manufactured and sold by our Seamap business and the Company’s standard contract terms and conditions, we expect our contract assets and liabilities to turn over, on average, within a three to six-month period. We do not have any long-term service contracts or related long-term contract assets or liabilities. Costs to obtain and fulfill contracts are considered immaterial and are expensed during the period when incurred. At January 31, 2024, our trade accounts receivable was approximately $6.6 million net of approximately $332,000 of allowance for credit losses.

 

Contract liabilities decreased by approximately $501,000 during fiscal 2026 due primarily to recognition of revenue during the year.

 

 

As of January 31, 2026 and 2025 contract assets and liabilities consisted of the following:

 

		January 31, 2026				January 31, 2025
Contract Assets:		(in thousands)
Contract assets, beginning balance		$	20			$	26
Revenue accrued			—				20
Amounts billed			(20	)			(26	)
Total unbilled revenue		$	—			$	20
Contract Liabilities:
Contract liabilities, beginning balance		$	1,792			$	3,649
Deferred revenue and customer deposits			1,230				1,526
Revenue recognized			(1,731	)			(3,383	)
Total deferred revenue & customer deposits		$	1,291			$	1,792

 

With respect to the disclosures above, sales and transaction-based taxes are excluded from revenue. Also, we expense costs incurred to obtain contracts because the amortization period would be one year or less. These costs are recorded in selling, general and administrative expenses.