Revenue

12 Months Ended

Dec. 31, 2022

Revenue from Contract with Customer [Abstract]

Revenue

Revenue

The Company’s revenue is comprised of sales of lidar sensors hardware, components, NRE services and licensing of certain information available with the Company.

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):

	Year Ended December 31,
	2022				2021				2020
	Revenue		% of Revenue		Revenue		% of Revenue		Revenue		% of Revenue
Revenue by primary geographical market:
North America	$	35,032	86	%	$	23,043	72	%	$	4,010	29	%
Asia Pacific	3,703		9	%	2,502		8	%	906		6	%
Europe and Middle East	1,963		5	%	6,399		20	%	9,035		65	%
Total	40,698		100	%	31,944		100	%	13,951		100	%
Revenue by timing of recognition:
Recognized at a point in time	17,595		43	%	8,892		28	%	2,639		19	%
Recognized over time	23,103		57	%	23,052		72	%	11,312		81	%
Total	40,698		100	%	31,944		100	%	13,951		100	%
Revenue by segment:
Autonomy Solutions	24,353		60	%	28,497		89	%	11,387		82	%
ATS	16,345		40	%	3,447		11	%	2,564		18	%
Total	40,698		100	%	31,944		100	%	13,951		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 delivery of production units. The grant date fair value of the Volvo Warrants, aggregating $2.9 million, represents consideration payable to VCTF and is being 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 the 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 of the Volvo warrants will be recorded as a reduction in revenue 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 December 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 December 31, 2022 and 2021 were $18.0 million and $9.9 million. 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 as revenue when control of the performance obligation is transferred to the customer. The Company’s contract liabilities were $3.0 million and $0.9 million as of December 31, 2022 and 2021, respectively, and were included in accrued and other current and non-current liabilities in the consolidated balance sheets.

The opening and closing balances of contract assets were as follows (in thousands):

	December 31,
	2022		2021
Contract assets, current	$	15,395	$	9,907
Contract assets, non-current	2,575		—
Ending balance	$	17,970	$	9,907

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

	December 31,
	2022		2021
Beginning balance	$	9,907	$	—
Amounts billed that were included in the contract assets beginning balance	(4,228)		—
Revenue recognized for performance obligations that have been satisfied but for which amounts have not been billed	12,291		9,907
Ending balance	$	17,970	$	9,907

The opening and closing balances of contract liabilities were as follows (in thousands):

	December 31,
	2022		2021
Contract liabilities, current	$	1,993	$	898
Contract liabilities, non-current	1,015		—
Ending balance	$	3,008	$	898

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

	December 31,
	2022		2021
Beginning balance	$	898	$	2,284
Revenue recognized that was included in the contract liabilities beginning balance	(489)		(1,792)
Increase due to cash received and not recognized as revenue and billings in excess of revenue recognized during the period	2,599		406
Ending balance	$	3,008	$	898

Remaining Performance Obligations

Revenue allocated to remaining performance obligations was $39.7 million as of December 31, 2022 and includes amounts within contract liabilities. The Company expects to recognize approximately 82% of this revenue over the next 12 months and the remainder thereafter.