Revenue and Deferred Revenue

3 Months Ended

Mar. 31, 2022

Revenue Recognition and Deferred Revenue [Abstract]

Revenue and Deferred Revenue

REVENUE AND DEFERRED REVENUE

Product revenue consists of an instrument with embedded software essential to the instrument’s functionality, consumables and platform evaluation agreements. Service revenue primarily consists of revenue received from the generation and analysis of proteomic data on behalf of the customer. Related party revenue is comprised of both the sale of products and services performed for PrognomIQ, as further discussed in Note 9. Grant revenues consist of services performed specifically for the reimbursement of research-related expenses.

Product Revenue

For the three months ended March 31, 2022 and 2021, the Company recognized $2.1 million and $0 of product revenue to non-related customers. As of March 31, 2022 and December 31, 2021, the Company recorded $0.4 million and $0.4 million of deferred revenue related to product sales.

Service Revenue

For the three months ended March 31, 2022 and 2021, the Company recognized $0.1 million and $0 of service revenue to non-related customers. As of March 31, 2022, there was $0 of deferred service revenue.

Deferred revenue activity for the period ended March 31, 2022 and December 31, 2021 are as follows (in thousands):

	March 31,		December 31,
	2022		2021
Balance, beginning of period	$	376	$	250
Additions	167		376
Revenue recognized	(149)		(250)
Balance, end of period	$	394	$	376

Transaction price allocated to remaining performance obligations represents contracted revenue that has not yet been recognized, which includes deferred revenue and non-cancelable amounts that will be invoiced and recognized as revenues in future periods. The Company expects to recognize substantially all of the remaining transaction price in the next 12 months.

As of March 31, 2022, 25% of our total revenue was generated outside of the United States, primarily from countries in Asia. As of March 31, 2021, no revenues were generated outside of the United States.

For the three months ended March 31, 2022, one customer accounted for 32% of the Company’s total revenue. For the three months ended March 31, 2021, total revenue was immaterial.

Grant and Other Revenue

In August 2019, the Company received a notice of a Small Business Innovation Research grant award from the National Institutes of Health, which will provide funding of approximately $1.1 million to the Company for its development of research applications. In June 2020, the Company received a notice that additional grant consideration of $0.9 million would be awarded. During the three months ended March 31, 2022 and 2021, the Company recognized grant revenue of $14,000 and $62,000, respectively, with respect to the award.