Statements of Operations and Comprehensive (Loss) Income Components

12 Months Ended

Dec. 31, 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, ODMs and 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):

	Year Ended December 31,
	2024		2023
Distributor	$	39,943	$	49,845
Non-distributor		10,459		13,920
Total revenue	$	50,402	$	63,765

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

	Year Ended December 31,
	2024		2023
Point in time	$	42,903	$	54,183
Over time		7,499		9,582
Total revenue	$	50,402	$	63,765

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

	Year Ended December 31,
	2024		2023
Product sales	$	42,203	$	53,123
Licensing		6,346		7,476
Royalties		700		862
Other revenue		1,153		2,304
Total revenue	$	50,402	$	63,765

The Company licenses its intellectual property and is entitled to consideration based on the customer’s sales. The Company makes estimates in instances when the customer reports sales on a lagged basis and actual information is not available timely. The estimates are based on historical trends in the customer’s activity and current market conditions. The amounts are reported in licensing, royalty, patent and other revenue in the statements of income and comprehensive income.

The Company recognizes revenue by geography based on the region in which its products are sold, and not to where the end products in which they are assembled are shipped. Revenue by region for the periods indicated was as follows (in thousands):

	Year Ended December 31,
	2024		2023
APAC	$	28,688	$	33,096
North America		10,710		15,922
EMEA		11,004		14,747
Total revenue	$	50,402	$	63,765

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. The Company has applied the revenue recognition principles under ASC 606 by analogy.

The Company records the total consideration from the Award as other income using an input method based on costs incurred to date relative to the total expected costs of the Award over its term. Amounts invoiced in excess of income recognized are recorded as a contract obligations liability on the balance sheets. This liability 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. During the year ended December 31, 2024, the Company has invoiced $8.1 million related to this Award of which no balance is outstanding as of December 31, 2024. The contract obligations liability was $2.0 million as of December 31, 2024. The Company recorded $6.1 million of other income related to this Award in the year ended December 31, 2024.