Revenue

3 Months Ended

Mar. 31, 2023

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 a 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,
	2023				2022
	Revenue		% of Revenue		Revenue		% of Revenue
Revenue by primary geographical market:
North America	$	13,198	91	%	$	4,968	73	%
Asia Pacific	592		4	%	1,860		27	%
Europe and Middle East	719		5	%	27		—	%
Total	$	14,509	100	%	$	6,855	100	%
Revenue by timing of recognition:
Recognized at a point in time	$	7,358	51	%	$	1,541	22	%
Recognized over time	7,151		49	%	5,314		78	%
Total	$	14,509	100	%	$	6,855	100	%
Revenue by segment:
Autonomy Solutions	$	10,673	74	%	$	5,898	86	%
ATS	3,836		26	%	957		14	%
Total	$	14,509	100	%	$	6,855	100	%

Volvo Stock Purchase Warrant

As disclosed in the Company’s 2022 Annual Report, the Company had previously issued certain stock purchase warrants (“Volvo Warrants”) to Volvo Car Technology Fund AB (“VCTF”) in connection with an engineering services contract. The Volvo Warrants vest and become exercisable in two tranches based on satisfaction of certain commercial milestones. The fair value of the first tranche of the Volvo Warrants was recorded as a reduction in revenue in 2021. The second tranche of the Volvo warrants will be recorded as reduction in revenue upon achievement of sales of a certain number of the Company’s sensors to Volvo for use in their commercial vehicles, which had not commenced as of the end of March 31, 2023.

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

	March 31, 2023		December 31, 2022
Contract assets, current	$	7,904	$	15,395
Contract assets, non-current	5,985		2,575
Ending balance	$	13,889	$	17,970

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

	March 31, 2023		December 31, 2022
Beginning balance	$	17,970	$	9,907
Amounts billed that were included in the contract assets beginning balance	(8,414)		(4,228)
Revenue recognized for performance obligations that have been satisfied but for which amounts have not been billed	4,333		12,291
Ending balance	$	13,889	$	17,970

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

	March 31, 2023		December 31, 2022
Contract liabilities, current	$	4,558	$	1,993
Contract liabilities, non-current	414		1,015
Ending balance	$	4,972	$	3,008

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

	March 31, 2023		December 31, 2022
Beginning balance	$	3,008	$	898
Revenue recognized that was included in the contract liabilities beginning balance	(1,492)		(489)
Increase due to cash received and not recognized as revenue and billings in excess of revenue recognized during the period	3,456		2,599
Ending balance	$	4,972	$	3,008

Remaining Performance Obligations

Revenue allocated to remaining performance obligations was $37.7 million as of March 31, 2023 and includes amounts within contract liabilities. The Company expects to recognize approximately 83% of this revenue over the next 12 months and the remainder thereafter.