XML 23 R11.htm IDEA: XBRL DOCUMENT v3.25.1
REVENUE FROM CONTRACTS WITH CUSTOMERS
 3 Months Ended
Mar. 31, 2025
Revenue from Contract with Customer [Abstract]  
REVENUE FROM CONTRACTS WITH CUSTOMERS
3. REVENUE FROM CONTRACTS WITH CUSTOMERS
Disaggregation of revenue
Nature of Products and Services
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 March 31,
20252024
Type of products or services
System sales$12,647 $— 
QCaaS1,533 1,692 
Professional services777 639 
Other revenue*44 134 
Total revenue$15,001 $2,465 
Timing of revenue recognition
Revenue recognized over time$2,337 $2,405 
Revenue recognized at a point in time12,664 60 
Total revenue$15,001 $2,465 
*Other revenue includes support and maintenance and printed circuit board sales.
Geographic Information
The following table presents a summary of revenue by geography for the three months ended March 31, 2025 and 2024, based on customer location (in thousands):
Three Months Ended March 31,
20252024
Germany$12,804 $723 
United States497 512 
Japan482 325 
Canada304 195 
Other915 710 
Total revenue$15,001 $2,465 
"Other" includes the rest of Europe, the Middle East, Asia, Australia and Africa where the revenue from a single country is not greater than 10% of total consolidated revenue. The Company has not had any sales in China, Russia or Ukraine.
Significant customers
A significant customer is defined as one that comprises up to ten percent or more of total revenues in a particular year or ten percent of outstanding accounts receivable balance as of the period end.
The tables below present the significant customers on a percentage of total revenue basis for the three months ended March 31, 2025 and 2024.
Three Months Ended March 31,
20252024
Customer A85 %18 %
As of each of March 31, 2025 and 2024, there were three significant customers that comprised ten percent or more of outstanding accounts receivable balances.
Contract balances
The following table provides information about account receivable, contract assets and liabilities as of March 31, 2025 and December 31, 2024 (in thousands):
As of March 31, 2025As of As of December 31, 2024
Trade accounts receivable and contract assets, net:
Trade accounts receivable, net of allowance for doubtful accounts and excluding unbilled receivables$437 $867 
Contract asset for unbilled receivables610 553 
Contract acquisition costs365 174 
Total contract assets$1,412 $1,594 
Contract liabilities:
Deferred revenue, current$5,549 $18,686 
Deferred revenue, non-current700 670 
Customer deposit1
56 48 
Total contract liabilities$6,305 $19,404 
1Customer deposit is included in accrued expenses and other current liabilities on the condensed consolidated balance sheets.
The allowance for credit losses related to trade accounts receivable was $0.1 million and $0.2 million as of March 31, 2025 and December 31, 2024. During the three months ended March 31, 2025 and 2024, the Company recorded immaterial write-offs of accounts receivable deemed uncollectible.
The revenue recognized in the condensed consolidated statements of operations and comprehensive loss that was included in the contract liability balance at the beginning of each period was $14.3 million and $1.4 million for the three months ended March 31, 2025 and 2024, respectively.
Changes in deferred revenue from contracts with customers were as follows (in thousands):
Three Months Ended March 31,
20252024
Balance at beginning of period$19,356 $2,748 
Deferral of revenue1,894 2,113 
Recognition of deferred revenue(15,001)(2,463)
Balance at end of period$6,249 $2,398 
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 March 31, 2025, the aggregate amount of remaining performance obligations that were unsatisfied or partially unsatisfied related to customer contracts was $6.4 million, of which approximately 80% is expected to be recognized to revenue in the next 12 months, 93% is expected to be recognized to revenue in the next two years, 96% is expected to be recognized within three years. Revenues allocated to remaining performance obligations represents the transaction price of noncancellable orders for which service has not been performed, which include deferred revenue and the amounts that will be invoiced and recognized as revenues in future periods from open contracts and excludes unexercised renewals.