Note 4 - Revenue

3 Months Ended

Mar. 31, 2024

Notes to Financial Statements

Revenue from Contract with Customer [Text Block]

Note 4 - Revenue

Revenue Recognition

Revenue is recognized when a customer obtains control of promised goods or services. The amount of revenue recognized reflects the consideration which the Company expects to be entitled to receive in exchange for these goods or services and excludes any sales incentives or taxes collected from customers which are subsequently remitted to government authorities.  For the three months ended March 31, 2024, one direct customer accounted for approximately 12% of the Company's total revenue.

Disaggregation of Revenue

The following tables presents the Company’s revenues disaggregated by major good or service line, timing of revenue recognition, and sales channel, reconciled to its reportable segments.

	Three months ended March 31, 2024
Major Goods/Service Lines
Products	$	3,102
Service contracts		1,852
	$	4,954
Timing of Revenue Recognition
Goods transferred at a point in time	$	2,285
Services transferred over time		2,669
	$	4,954
Sales Channels
Direct sales force		3,572
OEM partners		1,382
	$	4,954

	Three months ended March 31, 2023
Major Goods/Service Lines
Products	$	2,460
Service contracts		1,874
	$	4,334
Timing of Revenue Recognition
Goods transferred at a point in time	$	2,028
Services transferred over time		2,306
	$	4,334
Sales Channels
Direct sales force	$	2,778
OEM partners		1,556
	$	4,334

Products. Product revenue consists of sales of cancer detection systems and perpetual licenses. The Company also sells cancer detection systems in the form of term licenses which generally commit the customer to a three year, non cancellable subscription with annual billing at the start of each year.  The Company transfers control and recognizes a sale when the product is shipped from the manufacturing or warehousing facility to the customer.   

Service Contracts. The Company sells service contracts in which the Company provides professional services including product installations, maintenance, training and service repairs. The service contracts range from 12 months to 48 months. The Company typically receives payment at the inception of the contract and recognizes revenue on a straight-line basis over the term of the agreement.

As discussed in Note 2, the Company completed the sale of its Xoft (Therapy) business line on October 23, 2023.

Contract Balances

Contract liabilities are a component of deferred revenue, current contract assets are a component of prepaid and other assets and non-current contract assets are a component of other assets. The following table provides information about receivables, current and non-current contract assets, and contract liabilities from contracts with customers.

Contract balances

	Balance at		Balance at		Balance at
	March 31, 2024		December 31, 2023		December 31, 2022
Receivables, which are included in ‘Trade accounts receivable’	$	6,515	$	6,392	$	5,769
Current contract assets, which are included in “Prepaid and other assets”	$	4	$	—	$	748
Non-current contract assets, which are included in “other assets”	$	290	$	157	$	15
Contract liabilities, which are included in “Deferred revenue”	$	5,016	$	4,374	$	4,046

Timing of revenue recognition may differ from timing of invoicing of customers. The Company records a receivable when revenue is recognized prior to receipt of cash payment and the Company has the unconditional right to such consideration, or unearned revenue when cash payments are received or due in advance of performance. For multi-year agreements, the Company generally invoices customers annually at the beginning of each annual service period.

The Company records net contract assets or contract liabilities on a contract-by-contract basis. The Company records a contract asset for unbilled revenue when the Company’s performance is in excess of amounts billed or billable. The Company classifies the net contract asset as either a current or non-current based on the expected timing of the Company’s right to bill under the terms of the contract. The current contract asset balance primarily relates to a net unbilled revenue balance, which the Company expects to be able to bill for within one year. The non-current contract asset balance consists of net unbilled revenue balances with several customer which the Company expects to be able to bill for in more than one year.  

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

	Three Months
	Ended March 31,
	2024
Balance at beginning of period	$	4,374
Deferral of revenue		2,982
Recognition of deferred revenue		(2,340	)
Balance at end of period	$	5,016

As of March 31, 2024, the aggregate amount of unsatisfied, or partially satisfied, performance obligations from contracts with customers was $5.0 million. The Company expects to recognize approximately $3.6 million of its remaining performance obligations as revenue over the next 12 months. The remainder of the balance is expected to be recognized over the next two to three years.