REVENUE RECOGNITION

3 Months Ended

Mar. 31, 2025

Revenue from Contract with Customer [Abstract]

REVENUE RECOGNITION

4. REVENUE RECOGNITION

Disaggregation of Revenue

The following table provides information about disaggregated revenue by timing of revenue recognition (in thousands):

	Three Months Ended March 31, 2025
			License and
	Product		Royalty		Contract
	Revenue		Revenue		Revenue		Total
Timing of revenue recognition:
Products transferred at a point in time	$	504	$	85	$	-	$	589
Total	$	504	$	85	$	-	$	589

	Three Months Ended March 31, 2024
			License and
	Product		Royalty		Contract
	Revenue		Revenue		Revenue		Total
Timing of revenue recognition:
Products transferred at a point in time	$	856	$	47	$	53	$	956
Total	$	856	$	47	$	53	$	956

Contract Balances

Under Topic 606, the Company’s rights to consideration are presented separately depending on whether those rights are conditional or unconditional. Unconditional rights to consideration are included within accounts receivable, net of allowances in the condensed consolidated balance sheets.

Significant changes in the contract assets and the contract liabilities balances during the period are as follows (in thousands, except percentages):

	March 31,			December 31,
	2025			2024			$ Change			% Change
Contract assets	$	252		$	926		$	(674	)		(72.8	)
Contract liabilities		(314	)		(308	)		(6	)		1.9
Net contract assets (liabilities)	$	(62	)	$	618		$	(680	)		(110.0	)

Contract Acquisition Costs

The Company is required to capitalize certain contract acquisition costs consisting primarily of commissions paid when contracts are signed. As the Company currently does not pay any commissions upon the signing of a contract, no commission cost has been incurred as of March 31, 2025.

Transaction Price Allocated to the Remaining Performance Obligations

The remaining balance of the contract liabilities was approximately $0.3 million as of March 31, 2025. The Company expects to recognize 100% of this revenue over the next 12 months.