Quarterly report pursuant to Section 13 or 15(d)

REVENUE

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REVENUE
 6 Months Ended
Jun. 30, 2022
Revenue from Contract with Customer [Abstract]  
REVENUE REVENUE
Disaggregation of Revenue
The following table disaggregates revenue by service type and the timing of when these services are provided to the member or customer (in thousands):
Three Months Ended June 30, Six Months Ended June 30,
2022 2021 2022 2021
Services transferred at a point in time:
Flights, net of discounts and incentives $ 284,071  $ 212,660  $ 520,434  $ 403,134 
Aircraft management 58,307  47,594  116,356  96,017 
Other 55,789  5,450  62,967  9,739 
Services transferred over time:
Memberships 24,020  16,188  44,667  31,162 
Aircraft management 2,411  2,361  4,868  4,818 
Other 914  1,327  1,855  2,367 
Total $ 425,512  $ 285,580  $ 751,147  $ 547,237 
Revenue in the condensed consolidated statements of operations is presented net of discounts and incentives of $3.5 million and $6.7 million for the three and six months ended June 30, 2022, respectively, and $4.3 million and $7.5 million, respectively, for the three and six months ended June 30, 2021.
Contract Balances
Receivables from member and customer contracts are included within accounts receivable, net on the condensed consolidated balance sheets. As of June 30, 2022 and December 31, 2021, gross receivables from members and customers were $106.3 million and $71.8 million, respectively. As of June 30, 2022 and December 31, 2021, undeposited funds, included within accounts receivable, net, were $12.5 million and $13.5 million, respectively. As of June 30, 2022 and December 31, 2021, the allowance for expected credit losses was $4.8 million and $5.9 million, respectively.
Deferred revenue consists of the following (in thousands):
  June 30, 2022 December 31, 2021
Flights - Prepaid Blocks and jet cards $ 989,019  $ 876,750 
Memberships - annual dues 42,886  47,069 
Memberships - initiation fees 3,785  4,072 
Flights - credits 5,190  6,633 
Other 192  960 
Deferred revenue - total 1,041,072  935,484 
Less: Deferred revenue - current (1,039,279) (933,527)
Deferred revenue - non-current $ 1,793  $ 1,957 
Changes in deferred revenue for the six months ended June 30, 2022 were as follows (in thousands):
Deferred revenue - beginning balance $ 935,484 
Amounts deferred during the period 702,882 
Revenue recognized from amounts included in the deferred revenue beginning balance (378,699)
Revenue from current period sales (218,595)
Deferred revenue - ending balance $ 1,041,072 
Revenue expected to be recognized in future periods for performance obligations that are unsatisfied, or partially unsatisfied, as of June 30, 2022 approximates $338.0 million for the remaining two quarters of 2022 and $452.1 million, $125.7 million and $125.3 million for 2023, 2024 and 2025, respectively.
Costs to Obtain a Contract
Capitalized costs related to sales commissions and referral fees were $5.0 million and $9.3 million for the three and six months ended June 30, 2022, respectively, and $2.3 million and $4.0 million for the three and six months ended June 30, 2021, respectively.
As of June 30, 2022 and December 31, 2021, capitalized sales commissions and referral fees of $10.2 million and $8.6 million, respectively, are in other current assets and $1.6 million and $1.4 million, respectively, are in other non-current assets on the condensed consolidated balance sheets. Amortization expense related to capitalized sales commissions and referral fees included in sales and marketing expense in the condensed consolidated statements of operations was $4.2 million and $7.7 million for the three and six months ended June 30, 2022, respectively, and $1.9 million and $3.5 million for the three and six months ended June 30, 2021, respectively.