Note 4 — Revenue

The following table summarizes the Company’s revenue disaggregated by type of product and service:

2024

    

2023

Hardware

$

5,694

$

4,270

Software

 

1,003

 

774

Services

 

705

 

386

Total revenue

$

7,402

$

5,430

Contract Liabilities

Contract liabilities consist of sales of software subscriptions, where in most cases, the Company receives up-front payment and recognizes revenue over the subscription term. The Company classifies these contract liabilities as either current or non- current liabilities based on the expected timing of recognition of related revenue. Current contract liabilities were $483 and $1,944 and non-current contract liabilities were $83 and $121 as of December 31, 2024 and December 31, 2023, respectively. The change in contract liabilities is primarily related to additional subscription sales, offset by revenue recognition over the subscription term, which is generally 12-months.

Accounts Receivables Allowance

The following table summarizes the change in the accounts receivables allowance:

December 31, 

2024

2023

Beginning balance

    

$

180

    

$

290

Write-off of accounts receivable

 

(186)

 

(304)

Bad debt expense

 

41

 

194

Ending balance

$

35

$

180

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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.