Revenue Recognition

9 Months Ended

Sep. 30, 2022

Revenue from Contract with Customer [Abstract]

Revenue Recognition

Note 3. Revenue Recognition

Teknova recognizes revenue from the sale of manufactured products and services when control of promised goods or services are transferred to customers in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. Control is transferred when the customer has the ability to direct the use of and obtain benefits from the goods or services. The majority of the Company’s sales agreements contain performance obligations satisfied at a point in time when control is transferred to the customer.

Teknova’s revenue, disaggregated by business line, was as follows (in thousands):

	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2022		2021		2022		2021
Lab Essentials	$	9,470	$	7,195	$	24,838	$	20,440
Clinical Solutions		919		1,690		7,673		4,354
Sample Transport		—		73		6		1,035
Other		303		434		1,012		954
Total revenue	$	10,692	$	9,392	$	33,529	$	26,783

Teknova’s revenue, disaggregated by geographic region, was as follows (in thousands):

	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2022		2021		2022		2021
United States	$	10,384	$	9,114	$	32,489	$	25,890
International		308		278		1,040		893
Total revenue	$	10,692	$	9,392	$	33,529	$	26,783

The timing of revenue recognition may differ from the timing of invoicing to customers. Accounts receivable is recorded when an unconditional right to invoice and payment exists, such that only the passage of time is required before payment of consideration is due. A contract asset is recognized when a conditional right to consideration exists and transfer of control has occurred. We review contract asset balances for impairment, considering factors such as historical experience, creditworthiness, age of the balance as well as economic conditions. Contract assets were $0.7 million and zero as of September 30, 2022 and December 31, 2021, respectively. There were no contract asset impairments for the three or nine months ended September 30, 2022.