Revenue Recognition

6 Months Ended

Jun. 30, 2024

Revenue Recognition

Revenue Recognition

Note 3. Revenue Recognition

Disaggregation of Revenue

The Company disaggregates revenue from contracts with customers by product type and by geographical market. The Company believes that these categories aggregate the payor types by nature, amount, timing, and uncertainty of its revenue streams. The following table summarizes the Company’s disaggregated revenue (in thousands):

	Pattern of	Three months ended June 30,				Six months ended June 30,
	Recognition	2024		2023		2024		2023
By product type:
Devices and accessories	Point-in-time	$	14,648	$	12,273	$	25,939	$	21,121
Software and other services	Over time		6,839		6,214		13,204		12,842
Total revenue		$	21,487	$	18,487	$	39,143	$	33,963
By geographical market:
United States		$	17,039	$	15,491	$	30,775	$	27,496
International			4,448		2,996		8,368		6,467
Total revenue		$	21,487	$	18,487	$	39,143	$	33,963

Contract Balances

Contract balances represent amounts presented in the condensed consolidated balance sheets when the Company has either transferred goods or services to the customer or the customer has paid consideration to the Company under the contract. These contract balances include trade accounts receivable and deferred revenue. The Company recognizes a receivable when it has an unconditional right to payment, and payment terms are typically 30 days for sales on credit of product, software, and other services. The allowance for doubtful accounts was $2.2 million and $1.8 million as of June 30, 2024 and December 31, 2023, respectively. For the three months ended June 30, 2024 and 2023, the Company recognized $6.1 million and $6.3 million, respectively, of revenue that was included in the deferred revenue balance at the beginning of the period. For the six months ended June 30, 2024 and 2023, the Company recognized $11.1 million and $11.3 million, respectively, of revenue that was included in the deferred revenue balance at the beginning of the period.

Transaction Price Allocated to Remaining Performance Obligations

As of June 30, 2024 and December 31, 2023, the Company had $31.7 million and $32.0 million, respectively, of remaining performance obligations. As of June 30, 2024, the Company expects to recognize 60% of its remaining performance obligations as revenue in the next twelve months and an additional 40% thereafter.