15)
Revenue

Disaggregation of Revenue

The Company disaggregates revenue from contracts with customers by geographic region, as the Company’s management believes it best depicts how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors.

The following tables present revenue disaggregated by geography of the shipping location for the years ended December 31, 2025, 2024 and 2023:

 

 

Year Ended December 31,

 

 

2025

 

 

2024

 

 

2023

 

United States

 

$

33,386

 

 

$

38,197

 

 

$

53,558

 

Greater China

 

 

102,872

 

 

 

98,307

 

 

 

101,323

 

Europe

 

 

42,855

 

 

 

37,337

 

 

 

36,042

 

South Korea

 

 

15,049

 

 

 

15,211

 

 

 

18,768

 

Rest of North America

 

 

3,229

 

 

 

4,438

 

 

 

8,475

 

Rest of Asia Pacific

 

 

18,498

 

 

 

21,245

 

 

 

2,949

 

South America

 

 

1,505

 

 

 

1,947

 

 

 

2,054

 

Total

 

$

217,394

 

 

$

216,682

 

 

$

223,169

 

 

Contract Balances

Certain assets or liabilities are recorded depending on the timing of revenue recognition, billings and cash collections on a contract-by-contract basis. Contract liabilities primarily relate to deferred revenue, including advance consideration received from customers for contracts prior to the transfer of control to the customer, and therefore revenue is recognized upon delivery of products and services or as the services are performed.

The following table presents the assets and liabilities associated with the engineering services contracts recorded on the consolidated balance sheet as of December 31, 2025 and 2024:

 

 

 

 

December 31,

 

 

 

Balance Sheet Classification

 

2025

 

 

2024

 

Unbilled revenue

 

Prepaid expenses and other current assets

 

$

4,814

 

 

$

9,154

 

Contract liabilities

 

Accrued expenses and other current liabilities

 

$

4,601

 

 

$

2,735

 

 

During the year ended December 31, 2025, 2024 and 2023, the Company recognized $2,001, $1,708, and $1,734, respectively, of revenue related to amounts that were previously included in deferred revenue at the beginning of the period. Deferred revenue fluctuates over time due to changes in the timing of payments received from customers and revenue recognized for services provided.

Revenue related to remaining performance obligations represents the amount of contracted development arrangements that has not been recognized, which includes deferred revenue on the consolidated balance sheet and unbilled amounts that will be recognized as revenue in future periods. As of December 31, 2025, the amount of performance obligations that have not been recognized as revenue was $2,139, of which approximately 100% is expected to be recognized as revenue over the next 12 months. This amount excludes the value of remaining performance obligations for contracts with an original expected length of one year or less. Variable consideration that has been constrained is excluded from the amount of performance obligations that have not been recognized.

Concentrations

As identified below, one of our customers accounted for more than 10% of the Company’s total revenue for the year ended December 31, 2023. No individual customer accounted for more than 10% of the Company’s total revenue for the years ended December 31, 2025 and 2024:

 

 

 

December 31,

 

 

 

2025

 

 

2024

 

 

2023

 

Customer A

 

 

6.0

%

 

 

9.3

%

 

 

14.8

%

 

The loss of this customer would have a material impact on the Company’s consolidated financial results.

Two large customers represented 11% and 10% of accounts receivable as of December 31, 2025, respectively. One large customer represented 11% of accounts receivable as of December 31, 2024. No other individual customer represented more than 10% of accounts receivable at December 31, 2025 and 2024, respectively.

Historical Timeline

Fiscal YearFiled
2025Feb 27, 2026Showing above
2024Mar 3, 2025

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.