Revenue from contracts with customers

9 Months Ended

Sep. 30, 2022

Revenue from Contract with Customer [Abstract]

Revenue from contracts with customers

5. Revenue from contracts with customers

Disaggregation of revenue

The following table depicts the disaggregation of revenue by type of products or services and timing of transfer of products or services (in thousands):

	Three months ended September 30,
	2022		2021
Type of products or services
QCaaS	$	1,346	$	980
Professional services		347		306
Other revenue		2		21
Total revenue, net	$	1,695	$	1,307
Timing of revenue recognition
Revenue recognized over the time	$	1,660	$	1,247
Revenue recognized at a point in time		35		60
Total revenue, net	$	1,695	$	1,307

	Nine months ended September 30,
	2022		2021
Type of products or services
QCaaS	$	3,905	$	3,063
Professional services		812		736
Other revenue		61		54
Total revenue, net	$	4,778	$	3,853
Timing of revenue recognition
Revenue recognized over the time	$	4,618	$	3,773
Revenue recognized at a point in time		160		80
Total revenue, net	$	4,778	$	3,853

Other revenue includes printed circuit board sales.

Revenue by geographical markets is presented in Note 14 - Geographic areas.

Contract balances

The following table provides information about account receivable, contract assets and liabilities as of September 30, 2022 and December 31, 2021 (in thousands):

	September 30,		December 31,
	2022		2021
	(As Restated)
Contract assets:
Trade account receivable	$	419	$	421
Unbilled receivables, which are included in ‘Prepaid expenses and other current assets’		252		17
Total contract assets		671		438
Contract liabilities:
Deferred revenue, current		1,668		2,665
Deferred revenue, noncurrent		—		54
Customer deposit, which are included in ‘Accrued expenses and other current liabilities’		21		21
Total contract liabilities	$	1,689	$	2,740

Changes in deferred revenue from contracts with customers were as follows (in thousands):

	September 30,			December 31,
	2022			2021
	(As Restated)
Balance at beginning of period	$	2,719		$	4,713
Deferral of revenue		3,233			4,092
Recognition of deferred revenue		(4,284	)		(6,086	)
Balance at end of period	$	1,668		$	2,719

Remaining performance obligations

A significant number of the Company’s product and service sales are short-term in nature with a contract term of one year or less. For those contracts, the Company has utilized the practical expedient in ASC 606-10-50-14 exempting the Company from disclosure of the transaction price allocated to remaining performance obligations if the performance obligation is part of a contract that has an original expected duration of one year or less.

As of September 30, 2022, the aggregate amount of remaining performance obligations that were unsatisfied or partially unsatisfied related to customer contracts was $1.7 million. This amount included deferred revenue on the Company’s condensed consolidated balance sheets, of which approximately 99% is expected to be recognized to revenue in the next 12 months.

As of December 31, 2021, the aggregate amount of remaining performance obligations related to customer contracts that are unsatisfied or partially unsatisfied was $2.7 million which included deferred revenue on the Company’s condensed consolidated balance sheets, of which approximately 98% was expected to be recognized to revenue in the next 12 months.