ChronoScale Corp Revenue Disclosure
5. Revenue
The Company’s revenue is primarily generated through the sale and subscription of the EksoNR, Ekso Indego Therapy, and Ekso Indego Personal devices, along with the sale of support and maintenance contracts. Revenue from device product sales is recognized at the point in time when control of the product transfers to the customer. Transfer of control generally occurs upon shipment from the Company’s facility for sales of these devices. Support and maintenance contracts extend coverage beyond the Company’s standard warranty agreements ranging from 12 to 48 months. Revenue is recognized evenly over the term of the contracts. Revenue from medical device subscriptions is recognized evenly over the contract term, typically over 24 months.
Deferred Revenue
Deferred revenue is comprised mainly of unearned revenue related to extended support and maintenance contracts, but also includes other offerings for which the Company has been paid in advance and earns revenue when the Company transfers control of the product or service.
Deferred revenue consisted of the following:
| December 31, 2025 | December 31, 2024 | |||||||
| Deferred extended maintenance and support | $ | 2,907 | $ | 3,669 | ||||
| Deferred device and advances | 234 | 207 | ||||||
| Total deferred revenues | 3,141 | 3,876 | ||||||
| Less current portion | (1,727 | ) | (1,956 | ) | ||||
| Deferred revenues, non-current | $ | 1,414 | $ | 1,920 | ||||
Deferred revenue activity consisted of the following for the years ended December 31, 2025 and December 31, 2024:
| Year Ended December 31, 2025 | Year Ended December 31, 2024 | |||||||
| Beginning balance | $ | 3,876 | $ | 4,162 | ||||
| Deferral of revenue | 1,746 | 3,331 | ||||||
| Recognition of deferred revenue | (2,481 | ) | (3,617 | ) | ||||
| Ending balance | $ | 3,141 | $ | 3,876 | ||||
The Company expects to recognize approximately $1,727 of the deferred revenue during $833 in and $581 .
In addition to deferred revenue, the Company has a non-cancellable backlog of $554 expected to be recognized across 2026 and 2027, which includes customer orders received but not fulfilled and other ancillary products and services of $322, and contracts for subscription units of $232.
Disaggregation of Revenue
The following table disaggregates the Company’s revenue by major source for the year ended December 31, 2025:
| Total | ||||
| Device revenue | $ | 9,241 | ||
| Service and support | 2,918 | |||
| Subscriptions | 358 | |||
| Parts and other | 282 | |||
| $ | 12,799 | |||
The following table disaggregates the Company’s revenue by major source for the year ended December 31, 2024:
| Total | ||||
| Device revenue | $ | 13,323 | ||
| Service and support | 3,121 | |||
| Subscriptions | 527 | |||
| Parts and other | 954 | |||
| $ | 17,925 | |||
The Company operates in the following regions: (1) Americas, (2) Europe, the Middle East, and Africa region ("EMEA"), and (3) Asia Pacific region ("APAC"). Individual countries with revenue greater than 10% of total revenue for the year ended December 31, 2025 and 2024 are disclosed separately from the regional totals. Geographic information for revenue based on location of customers is as follows:
| Years ended December 31, | ||||||||
| 2025 | 2024 | |||||||
| United States | $ | 7,430 | $ | 9,712 | ||||
| Other | 72 | 421 | ||||||
| Americas | 7,502 | 10,133 | ||||||
| France | 1,430 | 3,006 | ||||||
| Other | 2,362 | 2,936 | ||||||
| EMEA | 3,792 | 5,942 | ||||||
| APAC | 1,505 | 1,850 | ||||||
| $ | 12,799 | $ | 17,925 | |||||
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.