Revenue (Tables)

3 Months Ended

Mar. 31, 2022

Revenue from Contract with Customer [Abstract]

Disaggregation of Revenues

Total revenue based on the disaggregation criteria described above is as follows (dollar in thousands, percentage may not foot due to rounding difference):

	Three Months Ended March 31,
	2022				2021
			% of Revenue				% of Revenue
	Revenue				Revenue
Revenue by geography:
North America(1)	$	(1,304)	(21	%)	$	5,044	28	%
Asia Pacific(2)	4,906		79	%	9,506		54	%
Europe, Middle East and Africa	2,578		42	%	3,176		18	%
Total	$	6,180	100	%	$	17,726	100	%
Revenue by products and services:
Products(1)	$	4,362	71	%	$	10,593	60	%
License and services(2)	1,818		29	%	7,133		40	%
Total	$	6,180	100	%	$	17,726	100	%
Revenue by timing of recognition:
Goods transferred at a point in time(1)	$	4,758	77	%	$	16,670	94	%
Goods and services transferred over time(2)	1,422		23	%	1,056		6	%
Total	$	6,180	100	%	$	17,726	100	%

(1) Includes a non-cash stock-based reduction of revenue of $5.3 million for the three months ended March 31 2022 associated with the Amazon Warrant agreement entered into in February 2022. See Note 9 for more information.

(2) Includes license revenue of $0.9 million and $6.4 million, respectively, related to patent cross-license agreements for the three months ended March 31, 2022 and 2021. In June 2020, the Company entered into a patent cross-license agreement related to its litigation settlement with a customer in Asia Pacific. Under the terms of the arrangement, the customer agreed to make a one-time license payment upon settlement, will make annual fixed royalty payments through 2024, and thereafter, will make product sales royalty payments through February 2030. In September 2020, Velodyne entered into another patent cross-license agreement related to its litigation with a different customer in Asia Pacific. As of March 31, 2022 and December 31, 2021, the Company had $3.8 million and $3.8 million, respectively, of current deferred revenue, and $11.1 million and $11.9 million, respectively, of long-term deferred revenue associated with the rights granted as part of these patent cross-license agreements to receive future patents as they represent stand ready obligations. As of March 31, 2022 and December 31, 2021, the Company also had $13.0 million and $16.3 million, respectively, of contract assets related to these patent cross-license agreements.

Contract Assets and Contract Liabilities

Contract assets and contract liabilities consisted of the following as of March 31, 2022 and December 31, 2021 (in thousands):

	March 31,		December 31,
	2022		2021
Contract assets, current
Unbilled accounts receivable	$	3,830	$	3,313
Contract assets, long-term
Unbilled accounts receivable	9,182		12,962
Total contract assets	$	13,012	$	16,275
Contract liabilities, current
Deferred revenue, current	$	5,452	$	6,209
Customer advance payment	204		139
Total	5,656		6,348
Contract liabilities, long-term
Deferred revenue, long-term	11,755		12,740
Total contract liabilities	$	17,411	$	19,088

The following table shows the significant changes in contract assets and contract liabilities balances (in thousands):

	Three Months Ended March 31,
	2022		2021
Contract assets:
Beginning balance	$	16,275	$	11,253
Transferred to receivables from contract assets recognized at the beginning of the period	(3,313)		(2,813)
Increase due to unbilled and recognized as revenue in excess of billings during the period, net of amounts transferred to receivables	50		5,251
Ending balance	$	13,012	$	13,691
Contract liabilities:
Beginning balance	$	19,088	$	22,055
Revenue recognized that was included in the contract liabilities beginning balance	(2,374)		(1,434)
Increase due to cash received and not recognized as revenue and billings in excess of revenue recognized during the period	697		3,327
Ending balance	$	17,411	$	23,948