Revenue and Deferred Revenue

6 Months Ended

Jun. 30, 2022

Revenue Recognition and Deferred Revenue [Abstract]

Revenue and Deferred Revenue

REVENUE AND DEFERRED REVENUEProduct 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 and six months ended June 30, 2022, the Company recognized $2.4 million and $4.6 million of product revenue to non-related customers, respectively. For the three and six months ended June 30, 2021, the Company recognized $0.8 million of product revenue to non-related customers.

As of June 30, 2022 and December 31, 2021, the Company recorded $0.1 million and $0.4 million of deferred revenue related to product sales, respectively.

Service Revenue

For the three and six months ended June 30, 2022, the Company recognized $0.1 million and $0.1 million of service revenue to non-related customers, respectively.

As of June 30, 2022 and December 31, 2021, the Company recorded $0.3 million and $0 of deferred service revenue, respectively.

Deferred revenue activity for the period ended June 30, 2022 and December 31, 2021 are as follows (in thousands):

	June 30,		December 31,
	2022		2021
Balance, beginning of period	$	376	$	250
Additions	315		376
Revenue recognized	(262)		(250)
Balance, end of period	$	429	$	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. As of June 30, 2022, $5.2 million of revenue is expected to be recognized from the remaining performance obligations over the next 24 months.

For the three and six months ended June 30, 2022, 33% and 29% of our total revenue, respectively, were generated outside of the United States, primarily from countries in Asia. For the three and six months ended June 30, 2021, 28% and 27% of our total revenue, respectively, were generated outside of the United States, primarily in Asia.

For the three months ended June 30, 2022, two customers accounted for 31% and 12% of the Company’s total revenue. For the six months ended June 30, 2022, one customer accounted for 31% of the Company’s total revenue. For the three months ended June 30, 2021, three customers accounted for 28%, 28%, and 15% of the Company’s total revenue. For the six months ended June 30, 2021, three customers accounted for 27%, 27%, and 14% of the Company’s total revenue.

Grant and Other Revenue

In August 2019, the Company received a notice of a Small Business Innovation Research (SBIR) 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. In May 2022, the SBIR grant reached the end of the award period. During the three months ended June 30, 2022 and 2021, the Company recognized grant revenue of $50,000 and $0.1

million, respectively, with respect to the award. During the six months ended June 30, 2022 and 2021, the Company recognized grant revenue of $64,000 and $0.2 million, respectively, with respect to the award.