Revenue
For the years ended December 31, 2025 and 2024, all material performance obligations related to revenue recognized were satisfied at a point in time.
Trade receivables
Trade receivables represent an unconditional right to consideration in exchange for goods or services transferred to a customer. The Company invoices its customers in accordance with the terms of the contract. Credit terms are generally net 30 - 45 days from the date of invoice. The timing between the satisfaction of performance obligations and when payment is due from the customer is generally not significant.
Other receivables
The Company exercised its right under certain MQ Contracts and recognized $1.6 million of revenue from MQ Contracts for the year ended December 31, 2024. The Company did not have material revenue from MQ Contracts for the year ended December 31, 2025. Receivables from MQ contracts are included as "Other receivables" within Receivables, net on the Consolidated Balance Sheets.
The following table shows the components of the Company's Receivables, net:
| | | | | | | | | | | | | | |
| | As of December 31, |
| (in thousands) | | 2025 | | 2024 |
| | | | |
| | | | |
| Trade receivables, net | | $ | 14,830 | | | $ | 13,265 | |
| | | | |
| Other | | 150 | | | 1,611 | |
| Receivables, net | | $ | 14,980 | | | $ | 14,876 | |
As of January 1, 2024, Trade receivables, net and Other receivables were $11.3 million and $4.9 million, respectively.
Contract assets
Contract assets are comprised of unbilled receivables from customers and are included in Receivables, net in the Consolidated Balance Sheets. Unbilled receivables represent a conditional right to consideration in exchange for goods or services transferred to a customer. The Company did not have material contract assets outstanding as of December 31, 2025 and 2024.
Contract liabilities
Contract liabilities are comprised of deferred revenue, which represents an obligation to transfer goods or services to a customer for which the Company has received consideration from the customer and, if deliverable within one year or less, is included in "Other current liabilities" in the Consolidated Balance Sheets and, if deliverable outside of one year, is included in "Other long-term liabilities" in the Consolidated Balance Sheets. The Company did not have material contract liabilities outstanding as of December 31, 2025 and 2024.
About Revenue Disclosures
Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.
Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.