Spectral AI, Inc. Revenue Disclosure
5. RESEARCH AND DEVELOPMENT REVENUE
For the years ended December 31, 2024 and 2023, the Company’s revenues disaggregated by the major sources was as follows (in thousands):
| Year Ended December 31, | ||||||||
| 2024 | 2023 | |||||||
| BARDA | $ | 27,903 | $ | 17,027 | ||||
| Other U.S governmental authorities | 1,678 | 1,029 | ||||||
| Total revenue | $ | 29,581 | $ | 18,056 | ||||
The following table presents the activity in the Company’s contract liabilities during the year ended December 31, 2024 (in thousands):
| December 31, 2023 Balance | Additions | Reductions | December 31, 2024 Balance | |||||||||||||
| Contract liabilities: | ||||||||||||||||
| Deferred revenue | $ | 2,311 | $ | 6,396 | $ | (7,747 | ) | $ | 960 | |||||||
| Total contract liabilities | $ | 2,311 | $ | 6,396 | $ | (7,747 | ) | $ | 960 | |||||||
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.