Revenue

9 Months Ended

Sep. 30, 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 September 30,
	2023				2022
	Revenue		% of Revenue		Revenue		% of Revenue
Revenue by primary geographical market:
North America	$	16,367	97	%	$	12,440	97	%
Europe and Middle East and other	592		3	%	345		3	%
Total	$	16,959	100	%	$	12,785	100	%
Revenue by timing of recognition:
Recognized at a point in time	$	10,753	63	%	$	6,728	53	%
Recognized over time	6,206		37	%	6,057		47	%
Total	$	16,959	100	%	$	12,785	100	%
Revenue by segment:
Autonomy Solutions	$	11,229	66	%	$	6,777	53	%
ATS	5,730		34	%	6,008		47	%
Total	$	16,959	100	%	$	12,785	100	%

	Nine Months Ended September 30,
	2023				2022
	Revenue		% of Revenue		Revenue		% of Revenue
Revenue by primary geographical market:
North America	$	43,341	91	%	$	26,124	88	%
Asia Pacific	1,022		2	%	2,960		10	%
Europe and Middle East	3,302		7	%	488		2	%
Total	$	47,665	100	%	$	29,572	100	%
Revenue by timing of recognition:
Recognized at a point in time	$	28,043	59	%	$	10,067	34	%
Recognized over time	19,622		41	%	19,505		66	%
Total	$	47,665	100	%	$	29,572	100	%
Revenue by segment:
Autonomy Solutions	$	31,640	66	%	$	16,854	57	%
ATS	16,025		34	%	12,718		43	%
Total	$	47,665	100	%	$	29,572	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 September 30, 2023.

Contract assets and liabilities

Changes in our contract assets and contract liabilities primarily result from the timing difference between our performance and the customer’s payment based on contractual terms. 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 the Company’s obligation to transfer goods or services to a customer for which the Company has received consideration from the customer. Customer advanced payments represent required customer payments in advance of product shipments. 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):

	September 30, 2023		December 31, 2022
Contract assets, current	$	15,302	$	15,395
Contract assets, non-current	2,081		2,575
Ending balance	$	17,383	$	17,970

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

	September 30, 2023		December 31, 2022
Beginning balance	$	17,970	$	9,907
Amounts billed that were included in the contract assets beginning balance	(8,379)		(4,228)
Revenue recognized for performance obligations that have been satisfied but for which amounts have not been billed	7,792		12,291
Ending balance	$	17,383	$	17,970

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

	September 30, 2023		December 31, 2022
Contract liabilities, current	$	3,019	$	1,993
Contract liabilities, non-current	250		1,015
Ending balance	$	3,269	$	3,008

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

	September 30, 2023		December 31, 2022
Beginning balance	$	3,008	$	898
Revenue recognized that was included in the contract liabilities beginning balance	(2,083)		(489)
Increase due to cash received and not recognized as revenue and billings in excess of revenue recognized during the period	2,344		2,599
Ending balance	$	3,269	$	3,008

Remaining Performance Obligations

Revenue allocated to remaining performance obligations was $23.0 million as of September 30, 2023 and includes amounts within contract liabilities. The Company expects to recognize approximately 80% of this revenue over the next 12 months and the remainder thereafter.