Revenue from Contracts with Customers

3 Months Ended

Mar. 31, 2023

Revenue from Contract with Customer [Abstract]

Revenue from Contracts with Customers

Note 9. Revenue from Contracts with Customers

Product and Product-Related Services Revenue

The Company had product and product-related services revenue consisting of revenue from the sale of instruments and consumables and the use of the HTG EdgeSeq proprietary technology to process samples and design custom RUO assays for the three months ended March 31, 2023 and 2022 as follows:

	Three Months Ended March 31,
	2023		2022
Product revenue:
Instrument	$	75,821	$	193,186
Consumables		568,711		471,214
Total product revenue		644,532		664,400
Product-related services revenue:
RUO sample processing		387,978		520,054
Total product-related services revenue		387,978		520,054
Total product and product-related services revenue	$	1,032,510	$	1,184,454

Revenue is reported based upon the geographic locations of the customers or distributors who purchase the Company's products and services. For sales to certain customers and distributors, their locations may be different from the locations of the end customers. Revenue by primary geographic market for the three months ended March 31, 2023 and 2022 was as follows:

	March 31, 2023
	United States		Europe		Other		Total
Product revenue:
Instrument	$	40,538	$	30,283	$	5,000	$	75,821
Consumables		163,933		404,778		—		568,711
Total product revenue		204,471		435,061		5,000		644,532
Product-related services revenue:
RUO sample processing		298,926		70,084		18,968		387,978
Total product-related services revenue		298,926		70,084		18,968		387,978
Total product and product-related services revenue	$	503,397	$	505,145	$	23,968	$	1,032,510

	March 31, 2022
	United States		Europe		Other		Total
Product revenue:
Instrument	$	169,043	$	22,478	$	1,665	$	193,186
Consumables		285,380		185,834		—		471,214
Total product revenue		454,423		208,312		1,665		664,400
Product-related services revenue:
RUO sample processing		512,700		7,354		—		520,054
Total product-related services revenue		512,700		7,354		—		520,054
Total product and product-related services revenue	$	967,123	$	215,666	$	1,665	$	1,184,454

As the Company’s agreements for product and product-related services revenue have an expected duration of one year or less, the Company has elected the practical expedient in ASC 606-10-50-14(a) to not disclose information about its remaining performance obligations.

Contract Liabilities

The Company may receive up-front payments from customers for sample processing services in addition to payments for instrument extended warranty contracts which are required to be made in advance. The Company recognizes such up-front payments as contract liabilities. The contract liabilities are subsequently reduced as revenue is recognized. Contract liabilities of approximately $0.1 million were included in other current liabilities and an additional immaterial amount of contract liabilities were included in other non-current liabilities in the accompanying condensed consolidated balance sheets as of March 31, 2023, reflecting the period in which the Company expects to realize the deferred revenue.

Changes in the Company’s contract liabilities were as follows as of the dates indicated:

	Product Revenue			Sample Processing			Total Contract Liability
Balance at January 1, 2023	$	146,714		$	27,000		$	173,714
Deferral of revenue		36,630			6,800			43,430
Recognition of deferred revenue		(53,649	)		(28,175	)		(81,824	)
Balance at March 31, 2023	$	129,695		$	5,625		$	135,320

	Product Revenue			Sample Processing			Total Contract Liability
Balance at January 1, 2022	$	128,529		$	30,621		$	159,150
Deferral of revenue		147,893			—			147,893
Recognition of deferred revenue		(102,812	)		(4,800	)		(107,612	)
Balance at March 31, 2022	$	173,610		$	25,821		$	199,431