Revenue

12 Months Ended

Dec. 31, 2024

Revenue from Contract with Customer [Abstract]

Revenue

Revenue

Disaggregation of Revenue

We disaggregate our revenue from customers by the type of arrangement, primarily from the sale of battery products and from providing customization design services, as this depicts how the nature, amount, timing, and uncertainty of our revenue and cash flows are affected by economic factors. The table below shows the composition of revenue from customers, as disaggregated by type of arrangement in accordance with Topic 606, and other revenue from government grants, which were accounted for following IAS 20 (in thousands).

	Year ended December 31,
	2024		2023
Revenue from customers:
Sale of battery products	$	22,067	$	4,900
Customization design services	1,500		3,891
Total revenue from customers	23,567		8,791
Other revenue – government grants	600		262
Total revenue	$	24,167	$	9,053

Revenue from sale of battery products includes bill-and-hold arrangements with certain customers, which totaled $4.9 million and $1.1 million during the years ended December 31, 2024 and 2023, respectively.

Contract Balances

The timing of revenue recognition, billings and cash collections can result in accounts receivable, contract assets recorded as unbilled receivables, and contract liabilities recorded as deferred revenue.

Accounts receivable represents our right to consideration that is unconditional. A right to consideration is unconditional if only the passage of time is required before payment of that consideration is due. Accounts receivable was $5.6 million, $1.3 million and $0.7 million as of December 31, 2024, December 31, 2023 and January 1, 2023, respectively.

Contract assets primarily relate to the rights to consideration for progress on contractual requirements performed but not billed at the reporting date. The contract assets are transferred to accounts receivable when the rights become unconditional. We had no contract assets as of December 31, 2024 and 2023.

Contract liabilities consist primarily of deferred revenue, which is the amount of progress payments received or billed in advance of recognizing those payments as revenue. Deferred revenue is subsequently recognized as revenue when the performance obligation is satisfied. Deferred revenue was $1.6 million, $3.4 million and $3.4 million as of December 31, 2024, December 31, 2023, and January 1, 2023, respectively. Deferred revenue as of December 31, 2024 decreased compared to prior years primarily due to the recognition of a non-recurring customization design service that was completed in the current fiscal year. During the years ended December 31, 2024 and 2023, revenue recognized from the prior year deferred revenue balance was $2.2 million and $2.7 million, respectively.

Remaining Performance Obligations

We have performance obligations associated with commitments in customer contracts for future delivery of battery products that have not yet been recognized as revenue. As of December 31, 2024, the aggregate amount of the transaction price allocated to the remaining performance obligations related to customer contracts that were unsatisfied or partially unsatisfied, including deferred revenue, was approximately $15.9 million. Given the applicable contract terms, we expect all of our remaining performance obligations to be recognized as revenue within one year. This amount does not include contracts to which the customer is not committed. The estimated timing of the recognition of remaining unsatisfied performance obligations is subject to change and is affected by changes to scope, changes in timing of delivery of products and services, or contract modifications.

Deferred Costs

Deferred costs, which consisted primarily of capitalized payroll-related costs to fulfill obligations under our customer contracts, were fully amortized as of December 31, 2024. The total deferred costs as of December 31, 2023 were $0.8

million. The amortization of deferred costs, which is included in cost of revenue in the accompanying consolidated statements of operations, was $1.2 million and $3.1 million during the years ended December 31, 2024 and 2023, respectively.

The Company evaluates deferred costs for impairment and recognizes any impairment loss in cost of revenues in the current period. During the years ended December 31, 2024 and 2023, cost of revenues includes costs incurred on certain customization design service contracts that were in excess of the recoverable amount.

Other Revenue – Government Grant

Grant revenue during the years ended December 31, 2024 and 2023 pertained to the funds received from government agencies to support some of our R&D efforts.