Deferred Revenue

3 Months Ended

Mar. 31, 2023

Deferred Revenue [Abstract]

Deferred Revenue

12.     DEFERRED REVENUE

Payment terms typically require payment upon shipment or installation of the NeuroStar Advanced Therapy System and additional payments as access codes for treatment sessions are delivered, which can span several years after the system is first delivered and installed. The timing of revenue recognition compared to billings and cash collections typically results in accounts receivable. However, sometimes customer advances and deposits may be required for certain customers and are recorded as contract liabilities (deferred revenue). For multi-year agreements, the Company generally invoices customers annually at the beginning of each annual coverage period and recognizes revenue over the term of the coverage period.

As of March 31, 2023, the Company expects to recognize approximately the following percentages of deferred revenue by year:

	Revenue
Year:	Recognition
Remainder of 2023	61	%
2024	29	%
2025	9	%
2026	1	%
Total	100	%

Revenue recognized for the three months ended March 31, 2023 and 2022 that was included in the contract liability balance at the beginning of the year was $0.9 million and $1.4 million, respectively, and primarily represented revenue earned from separately priced extended warranties, customer deposits, milestone revenue, and clinical training.

Customers

Significant customers are those that represent more than 10% of the Company’s total revenue. For the period ended March 31, 2023 and 2022, one customer accounted for 18% of the Company’s revenue.

Accounts receivable outstanding related to the customer was $1.0 million and $5.2 million as of March 31, 2023 and December 31, 2022, respectively.

Geographical information

The following geographic data includes revenue generated from the Company’s third-party distributors. The Company’s revenue was generated in the following geographic regions and by product line for the periods indicated (in thousands):

	Revenues by Geography
	Three Months Ended March 31,
	2023				2022
			% of				% of
	Amount		Revenues		Amount		Revenues
	(in thousands, except percentages)
United States	$	14,964	96	%	$	13,517	95	%
International		576	4	%		664	5	%
Total revenues	$	15,540	100	%	$	14,181	100	%

	U.S. Revenues by Product Category
	Three Months Ended March 31,
	2023				2022
			% of				% of
	Amount		Revenues		Amount		Revenues
	(in thousands, except percentages)
NeuroStar Advanced Therapy system	$	3,850	26	%	$	3,642	27	%
Treatment sessions		10,643	71	%		9,469	70	%
Other		471	3	%		406	3	%
Total U.S. revenues	$	14,964	100	%	$	13,517	100	%

	International Revenues by Product Category
	Three Months Ended March 31,
	2023				2022
			% of				% of
	Amount		Revenues		Amount		Revenues
	(in thousands, except percentages)
NeuroStar Advanced Therapy System	$	259	45	%	$	313	47	%
Treatment sessions		184	32	%		170	26	%
Other		133	23	%		181	27	%
Total international revenues	$	576	100	%	$	664	100	%