HARVARD BIOSCIENCE INC Revenue Disclosure
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3. |
Revenues |
The following table represents a disaggregation of revenue from contracts with customers for the years ended December 31, 2024, and 2023:
Revenues by type were as follows:
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Year Ended December 31, |
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(in thousands) |
2024 |
2023 |
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Instruments, equipment, software and accessories |
$ | 86,964 | $ | 105,716 | ||||
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Service, maintenance and warranty contracts |
7,171 | 6,534 | ||||||
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Total revenues |
$ | 94,135 | $ | 112,250 | ||||
Revenues by timing of recognition were as follows:
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Year Ended December 31, |
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(in thousands) |
2024 |
2023 |
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Goods and services transferred at a point in time |
$ | 90,420 | $ | 108,558 | ||||
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Goods and services transferred over time |
3,715 | 3,692 | ||||||
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Total revenues |
$ | 94,135 | $ | 112,250 | ||||
Revenues by geographic destination were as follows:
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Year Ended December 31, |
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(in thousands) |
2024 |
2023 |
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Americas |
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United States |
$ | 41,738 | $ | 48,205 | ||||
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Americas - Other |
3,596 | 3,517 | ||||||
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Europe, Middle East and Africa |
28,405 | 33,275 | ||||||
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Asia |
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Greater China |
13,297 | 18,488 | ||||||
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Asia - Other |
7,099 | 8,765 | ||||||
| $ | 94,135 | $ | 112,250 | |||||
Contract Liabilities
The following table provides a summary of contract liabilities as of the periods indicated:
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December 31, |
Change |
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(in thousands) |
2024 |
2023 |
2022 |
2024 vs. 2023 |
2023 vs. 2022 |
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Service, maintenance and warranty contracts |
$ | 2,366 | $ | 2,849 | $ | 1,530 | $ | (483 | ) | $ | 1,319 | |||||||||
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Customer advances |
1,440 | 1,659 | 1,840 | (219 | ) | (181 | ) | |||||||||||||
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Total contract liabilities |
$ | 3,806 | $ | 4,508 | $ | 3,370 | $ | (702 | ) | $ | 1,138 | |||||||||
Changes in the Company’s contract liabilities are primarily due to the timing of receipt of payments under service, maintenance and warranty contracts and lower revenue volumes. During the years ended December 31, 2024, and 2023, the Company recognized revenue of $3.4 million and $2.1 million from contract liabilities existing at December 31, 2023 and 2022, respectively.
Provision for Expected Credit Losses on Receivables
Activity in the provision for expected losses on receivables was as follows:
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December 31, |
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(in thousands) |
2024 |
2023 |
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Balance, beginning of period |
$ | 160 | $ | 191 | ||||
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Provision for expected credit losses |
60 | 29 | ||||||
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Charge-offs and other |
(5 | ) | (60 | ) | ||||
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Balance, end of period |
$ | 215 | $ | 160 | ||||
Concentrations
customer accounted for more than 10% of revenue for the years ended December 31, 2024, and 2023, or for more than 10% of net accounts receivable at December 31, 2024 and 2023.
Warranties
Warranty activity was as follows:
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Year Ended December 31, |
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(in thousands) |
2024 |
2023 |
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Balance, beginning of period |
$ | 336 | $ | 268 | ||||
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Provision for warranties |
317 | 381 | ||||||
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Warranty claims |
(335 | ) | (313 | ) | ||||
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Balance, end of period |
$ | 318 | $ | 336 | ||||
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.