Disaggregation of Revenue and Deferred Revenue

9 Months Ended

Sep. 30, 2024

Revenue from Contract with Customer [Abstract]

Disaggregation of Revenue and Deferred Revenue

Disaggregation of Revenue and Deferred Revenue

Disaggregation of Revenue

The Company recognizes revenue when control is transferred of the promised products or services to its customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those products or services. The Company derives revenue from software as a service, design and implementation services for its Indoor Intelligence systems, and professional services for work performed in conjunction with its systems recognition policy. Revenues consisted of the following (in thousands):

	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2024		2023		2024		2023
Recurring revenue
Software	$	327	$	—	$	697	$	—
Total recurring revenue	$	327	$	—	$	697	$	—
Non-recurring revenue
Hardware	$	422	$	—	$	1,190	$	—
Software	77		—		82		—
Professional services	92		—		200		—
Total non-recurring revenue	$	591	$	—	$	1,472	$	—
Total Revenue	$	918	$	—	$	2,169	$	—

	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2024		2023		2024		2023
Revenue recognized at a point in time
Industrial IoT (1)	$	499	$	—	$	1,272	$	—
Total	$	499	$	—	$	1,272	$	—
Revenue recognized over time
Industrial IoT (2) (3)	$	419	$	—	$	897	$	—
Total	$	419	$	—	$	897	$	—
Total Revenue	$	918	$	—	$	2,169	$	—

(1) Hardware and Software's performance obligation is satisfied at a point in time when they are shipped to the customer.

(2) Professional services are also contracted on the fixed fee and time and materials basis. Fixed fees are paid monthly, in phases, or upon acceptance of deliverables. The Company has elected the practical expedient to recognize revenue for the right to invoice because the Company’s right to consideration corresponds directly with the value to the customer of the performance completed to date, in which revenue is recognized over time.

(3) Software As A Service Revenue's performance obligation is satisfied evenly over the service period using a time-based measure because the Company is providing continuous access to its service and revenue is recognized over time.

Deferred revenue

As of December 31, 2023, the Company did not have any deferred revenue. As part of the XTI Merger, the Company acquired approximately $0.8 million of deferred revenue, all of which relates to RTLS maintenance agreements.

The Company's deferred revenue balance of $0.5 million as of September 30, 2024 related to cash received in advance for product maintenance services and professional services provided by the Company’s technical staff. The fair value of the deferred revenue approximates the services to be rendered. The Company expects to satisfy its remaining performance obligations for these maintenance services and professional services, and recognize the deferred revenue and related contract costs over the next twelve months.