Revenue

3 Months Ended

Mar. 31, 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 March 31,
	2022				2021
	Revenue		% of Revenue		Revenue		% of Revenue
Revenue by primary geographical market:
North America	$	4,968	73	%	$	2,539	48	%
Asia Pacific	1,860		27	%	321		6	%
Europe and Middle East	27		—	%	2,453		46	%
Total	$	6,855	100	%	$	5,313	100	%
Revenue by timing of recognition:
Recognized at a point in time	$	1,541	22	%	$	2,053	39	%
Recognized over time	5,314		78	%	3,260		61	%
Total	$	6,855	100	%	$	5,313	100	%
Revenue by segment:
Autonomy Solutions	$	5,898	86	%	$	4,336	82	%
Components	957		14	%	977		18	%
Total	$	6,855	100	%	$	5,313	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 Company’s management determined that the vesting of the second tranche of Volvo Warrants was not probable as of March 31, 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 March 31, 2022 and December 31, 2021 were $14.8 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 $0.9 million as of March 31, 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): 

	March 31, 2022		December 31, 2021
Beginning balance	$	9,907	$	—
Revenue recognized for performance obligations that have been satisfied but for which amounts have not been billed	4,865		9,907
Ending balance	$	14,772	$	9,907

The significant changes in contract liabilities balances consisted of the following (in thousands): 

	March 31, 2022		December 31, 2021
Beginning balance	$	898	$	2,284
Revenue recognized that was included in the contract liabilities beginning balance	(250)		(1,792)
Net increase due to cash received and not recognized as revenue and billings in excess of revenue recognized during the period	259		406
Ending balance	$	907	$	898