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Revenue
6 Months Ended
Jun. 30, 2022
Revenue from Contract with Customer [Abstract]  
Revenue Revenue
The Company’s revenue is comprised of sales of lidar sensors hardware, components and NRE services.
Disaggregation of Revenues
The Company disaggregates its revenue from contracts with customers by (1) geographic region based on customer’s billed to location, and (2) type of good or service and timing of transfer of goods or services to customers (point-in-time or over time), as it believes it best depicts how the nature, amount, timing and uncertainty of its revenue and cash flows are affected by economic factors. Total revenue based on the disaggregation criteria described above, as well as revenue by segment, are as follows (in thousands):
Three Months Ended June 30,
20222021
Revenue% of RevenueRevenue% of Revenue
Revenue by primary geographical market:
North America$8,716 88 %$4,061 65 %
Asia Pacific932 %154 %
Europe and Middle East284 %2,094 33 %
Total$9,932 100 %$6,309 100 %
Revenue by timing of recognition:
Recognized at a point in time$1,798 18 %$1,988 32 %
Recognized over time8,134 82 %4,321 68 %
Total$9,932 100 %$6,309 100 %
Revenue by segment:
Autonomy Solutions$4,179 42 %$5,822 92 %
ATS5,753 58 %487 %
Total$9,932 100 %$6,309 100 %
Six Months Ended June 30,
20222021
Revenue% of RevenueRevenue% of Revenue
Revenue by primary geographical market:
North America$13,684 81 %$6,600 57 %
Asia Pacific2,792 17 %475 %
Europe and Middle East311 %4,547 39 %
Total$16,787 100 %$11,622 100 %
Revenue by timing of recognition:
Recognized at a point in time$3,339 20 %$4,041 35 %
Recognized over time13,448 80 %7,581 65 %
Total$16,787 100 %$11,622 100 %
Revenue by segment:
Autonomy Solutions$10,077 60 %$10,158 87 %
ATS6,710 40 %1,464 13 %
Total$16,787 100 %$11,622 100 %
Volvo Stock Purchase Warrant
In March 2020, the Company issued a stock purchase warrant (“Volvo Warrants”) to Volvo Car Technology Fund AB (“VCTF”) in connection with an engineering services contract. The Volvo Warrants entitle VCTF to purchase up to 4,089,280 shares of Class A common stock, at a price of $3.1769 per share from the Company and were determined to be an equity classified award to VCTF. The Volvo Warrants vest and become exercisable in two tranches based on satisfaction of certain commercial milestones, upon reaching commercial production and delivering of production units. The grant date fair value of warrants, aggregating $2.9 million, represents consideration payable to VCTF and will be recognized as reduction in revenue
consistent with the revenue recognition pattern when these warrants become probable of vesting. The Company’s management determined that the vesting of the first of the two tranches of Volvo Warrants was probable as of December 31, 2021. As such, the Company had recognized a reduction in revenue in the amount of $1.0 million related to the said first tranche of the Volvo Warrants in the year ended December 31, 2021. The second tranche will be expensed upon achievement of sales of a certain number of the Company’s sensors to Volvo for use in their commercial vehicles. This threshold had not been achieved as of the end of the second quarter of 2022.
Contract assets and liabilities
Contract assets primarily represent revenues recognized for performance obligations that have been satisfied but for which amounts have not been billed. The Company’s contract assets as of June 30, 2022 and December 31, 2021 were $18.3 million and $9.9 million, respectively. Contract liabilities consist of deferred revenue and customer advanced payments. Deferred revenue includes billings in excess of revenue recognized related to product sales and other services revenue and is recognized as revenue when the Company performs under the contract. Customer advanced payments represent required customer payments in advance of product shipments according to customer’s payment term. Customer advance payments are recognized in revenue as or when control of the performance obligation is transferred to the customer. The Company’s contract liabilities were $3.7 million and $0.9 million as of June 30, 2022 and December 31, 2021, and were included in accrued and other current liabilities in the condensed consolidated balance sheets.
The significant changes in contract assets balances consisted of the following (in thousands): 
 June 30, 2022December 31, 2021
Beginning balance$9,907 $— 
Amounts billed that were included in the contract assets beginning balance(1,602)
Revenue recognized for performance obligations that have been satisfied but for which amounts have not been billed9,992 9,907 
Ending balance$18,297 $9,907 
The opening and closing balances of contract liabilities were as follows (in thousands):
 June 30, 2022December 31, 2021
Contract liabilities, current$3,665 $898 
Contract liabilities, non-current33 — 
Ending balance$3,698 $898 
The significant changes in contract liabilities balances consisted of the following (in thousands): 
 June 30, 2022December 31, 2021
Beginning balance$898 $2,284 
Revenue recognized that was included in the contract liabilities beginning balance(397)(1,792)
Net increase due to cash received and not recognized as revenue and billings in excess of revenue recognized during the period3,197 406 
Ending balance$3,698 $898