Odysight.ai Inc. Revenue Disclosure

NOTE 10 – REVENUES AND ENTITY WIDE DISCLOSURES:

 

ASC 280, “Segment Reporting,” establishes standards for reporting information about operating segments. The Company manages its business based on one operating segment, as described in Note 1.

 

a.

Disaggregation of revenue

 SCHEDULE OF DISAGGREGATION OF REVENUE

		Year ended on December 31,
		2022				2021
		USD in thousands
Development Services (customer A) (*)			317				-
Products			348				387
			665				387

 

	(*)	During the second quarter of 2022, the Company completed the development of the product relating to a customer-specific project for a Fortune 500 multinational healthcare corporation (“Customer A”) and moved from the development phase of the project to its production phase. As a result, during the year ended December 31, 2022, the Company recognized development services revenues and related development costs that had been previously deferred, in the amounts of $317 thousand and $180 thousand, respectively. The amounts were recognized based on the expected manufacturing term of the product, which the Company estimates at 7 years.
		In addition, following the commencement of the production phase, the Company recognized product revenues of $221 thousands during the year ended December 31, 2022 from the sale of units of the product developed in the context of these development services.

 

b.

Revenues by geographical area (based on the location of customers)

 

The following is a summary of revenues within geographic areas:

 SCHEDULE OF REVENUES WITHIN GEOGRAPHIC AREAS

		2022				2021
		Year ended on December 31,
		2022				2021
		USD in thousands
United States			553				273
United Kingdom			65				48
Israel			-				19
Other			47				47
Revenue			665				387

 

c.

Major customers

 

Set forth below is a breakdown of Company’s revenue by major customers (major customer –revenues from these customers constituted at least 10% of total revenues in a certain year):

 

 SCHEDULE OF MAJOR CUSTOMER BREAKDOWN OF COMPANY’S REVENUE

		Year ended on
		December 31,
		2022				2021
		USD in thousands
Customer A			538				-
Customer B			-				199
Customer C			65				48

 

 

d.

Contract fulfillment assets and Contract liabilities:

SCHEDULE OF CONTRACT FULFILLMENT ASSETS AND CONTRACT LIABILITIES 

		2022				2021
		December 31,
		2022				2021
		USD in thousands
Contract fulfillment assets:			1,495				1,675
Contract liabilities			3,644				2,420

 

Contract liabilities include advance payments, which are primarily related to advanced billings for development services.

 

 

Remaining Performance Obligations

 

Remaining Performance Obligations (“RPO”) represents contracted revenue that has not yet been recognized, which includes deferred revenue and amounts that will be recognized as revenue in future periods. As of December 31, 2022, the total RPO amounted to $3,644 thousand, which the Company expects to recognize over the expected manufacturing term of the product under development.

 

 

SCOUTCAM INC.

 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS