Revenue and Deferred Revenue

12 Months Ended

Dec. 31, 2022

Revenue Recognition and Deferred Revenue [Abstract]

Revenue and Deferred Revenue

REVENUE AND DEFERRED REVENUE

Product revenue consists of 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 related parties, as further discussed in Note 11. Grant revenues consist of services performed specifically for the reimbursement of research-related expenses.

Product Revenue

For the years ended December 31, 2022 and 2021, the Company recognized $8.6 million and $3.6 million of product revenue to non-related customers, respectively. As of December 31, 2022 and 2021, the Company recorded $34,000 and $0.4 million of deferred revenue related to product sales, respectively.

Service Revenue

For the years ended December 31, 2022 and 2021 the Company recognized $0.9 million and $0.5 million of service revenue to non-related customers, respectively. As of December 31, 2022 and 2021, there were $0.1 million and $0 of deferred service revenue, respectively.

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

	December 31,
	2022		2021
Balance, beginning of period	$	376	$	250
Additions	233		376
Revenue recognized	(476)		(250)
Balance, end of period	$	133	$	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 December 31, 2022, $2.0 million of revenue is expected to be recognized from the remaining performance obligations, of which 66% is expected to be recognized within 12 months, and the remainder thereafter.

Grant 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. For the years ended December 31, 2022 and 2021, the Company recognized grant revenue of $0.3 million and $0.2 million with respect to the award.