Statements of Operations and Comprehensive (Loss) Income Components

9 Months Ended

Sep. 30, 2024

Statements of Operations and Comprehensive (Loss) Income Components

Statements of Operations and Comprehensive (Loss) Income Components

3. Statements of Operations and Comprehensive (Loss) Income Components

Revenue

The Company sells products to its distributors, original design manufacturers (ODMs), and original equipment manufacturers (OEMs). The Company also recognizes revenue under licensing, patent, and royalty agreements with some customers.

The following table presents the Company’s revenues disaggregated by sales channel (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Distributor	$	10,152	$	12,964	$	29,666	$	38,171
Non-distributor		1,941		3,502		7,493		8,888
Total revenue	$	12,093	$	16,466	$	37,159	$	47,059

The following table presents the Company’s revenues disaggregated by timing of recognition (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Point in time	$	10,557	$	13,825	$	31,586	$	41,485
Over time		1,536		2,641		5,573		5,574
Total revenue	$	12,093	$	16,466	$	37,159	$	47,059

The following table presents the Company’s revenues disaggregated by type (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Product sales	$	10,443	$	13,543	$	31,190	$	40,726
Licensing		1,195		1,893		4,722		4,710
Royalties		114		232		396		561
Other revenue		341		798		851		1,062
Total revenue	$	12,093	$	16,466	$	37,159	$	47,059

The Company recognizes revenue in three primary geographic regions: Asia-Pacific (APAC); North America; and Europe, Middle East and Africa (EMEA). The Company recognizes revenue by geography based on the region in which the Company’s products are sold, and not to where the end products in which they are assembled are shipped. The Company’s revenue by region for the periods indicated was as follows (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
APAC	$	7,923	$	8,663	$	21,163	$	24,218
North America		1,874		4,607		7,857		10,798
EMEA		2,296		3,196		8,139		12,043
Total revenue	$	12,093	$	16,466	$	37,159	$	47,059

Other Income, Net

On August 14, 2024, the Company received a strategic award to develop a long-term plan to provide manufacturing services for aerospace and defense segments (the Award). Under the Award, the Company will provide a plan to mitigate risks to its MRAM manufacturing supply chain. Pursuant to the Award, the Company may receive cash payments upon the achievement of certain technical tasks and deliverables. The Award allows for milestones totaling up to approximately $14.6 million for the Company over a span of 2.5 years.

The Award is not in the ordinary course of the Company’s business and hence not a contract with a customer.

During the three months ended September 30, 2024, the Company billed $6.9 million relating to the Award and recorded $4.0 million of other income. The Company has recorded this other income using an input method based on costs incurred to date relative to the total expected costs of the Award over its term. The remaining $2.9 million of the billed amount is recorded as contract obligations liability on the condensed balance sheets. This amount represents the Company’s obligation to perform future services for which the Company has received or is entitled to receive payment but which are not yet fulfilled. The Company has collected $3.0 million relating to this award during the three months ended September 30, 2024 and recorded the remaining $3.9 million in prepaid expenses and other current assets on the condensed balance sheets.