Revenue

3 Months Ended

Mar. 31, 2024

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,
	2024				2023
	Revenue		% of Revenue		Revenue		% of Revenue
Revenue by primary geographical market:
North America	$	20,337	97	%	$	13,198	91	%
Asia Pacific	81		—	%	592		4	%
Europe and Middle East	550		3	%	719		5	%
Total	$	20,968	100	%	$	14,509	100	%
Revenue by timing of recognition:
Recognized at a point in time	$	15,304	73	%	$	7,358	51	%
Recognized over time	5,664		27	%	7,151		49	%
Total	$	20,968	100	%	$	14,509	100	%
Revenue by segment:
Autonomy Solutions	$	16,320	78	%	$	10,673	74	%
ATS	4,648		22	%	3,836		26	%
Total	$	20,968	100	%	$	14,509	100	%

Volvo Stock Purchase Warrant

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 to be amortized over sales of a certain number of the Company’s sensors to Volvo for use in their commercial vehicles, which commenced in the second quarter of 2024.

Contract assets and liabilities

Changes in the Company’s contract assets and contract liabilities primarily result from the timing difference between the Company’s 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 advance 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):

	March 31, 2024		December 31, 2023
Contract assets, current	$	14,580	$	14,132
Contract assets, non-current	3,827		2,471
Ending balance	$	18,407	$	16,603

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

	March 31, 2024		December 31, 2023
Beginning balance	$	16,603	$	17,970
Amounts billed that were included in the contract assets beginning balance	(2,518)		(10,965)
Contract assets from acquisition of EM4 (See Note 3)	1,644		—
Revenue recognized for performance obligations that have been satisfied but for which amounts have not been billed	2,678		9,598
Ending balance	$	18,407	$	16,603

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

	March 31, 2024		December 31, 2023
Contract liabilities, current	$	2,341	$	3,127
Contract liabilities, non-current	525		805
Ending balance	$	2,866	$	3,932

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

	March 31, 2024		December 31, 2023
Beginning balance	$	3,932	$	3,008
Revenue recognized that was included in the contract liabilities beginning balance	(1,570)		(2,125)
Increase due to cash received and not recognized as revenue and billings in excess of revenue recognized during the period	504		3,049
Ending balance	$	2,866	$	3,932

Remaining Performance Obligations

Revenue allocated to remaining performance obligations was $8.9 million as of March 31, 2024 and includes amounts within contract liabilities. The Company expects to recognize approximately 94% of this revenue over the next 12 months and the remainder thereafter.