Revenue and Deferred Revenue

3 Months Ended

Mar. 31, 2023

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 related parties, as further discussed in Note 10. Grant revenues consist of services performed specifically for the reimbursement of research-related expenses.

Product Revenue

For the three months ended March 31, 2023 and 2022, the Company recognized $2.3 million and $2.1 million of product revenue to non-related customers, respectively. As of March 31, 2023 and December 31, 2022, the Company recorded $0.1 million and $34,000 of deferred revenue related to product sales, respectively.

Service Revenue

For the three months ended March 31, 2023 and 2022, the Company recognized $69,000 and $79,000 of service revenue to non-related customers, respectively. As of March 31, 2023 and December 31, 2022, the Company recorded $0.2 million and $0.1 million of deferred service revenue, respectively.

Deferred revenue activity for the period ended March 31, 2023 and December 31, 2022 are as follows (in thousands):

	March 31,		December 31,
	2023		2022
Balance, beginning of period	$	133	$	376
Additions	614		233
Revenue recognized	(441)		(476)
Balance, end of period	$	306	$	133

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 March 31, 2023, $3.1 million of revenue is expected to be recognized from the remaining performance obligations, of which 77% is expected to be recognized within 12 months and the remainder thereafter.

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. For the three months ended March 31, 2023 and 2022, the Company recognized $0.3 million and approximately $14,000 of grant revenue, respectively, with respect to the award.