Picard Medical, Inc. Revenue Disclosure
| 5. | REVENUE |
Disaggregation of Revenue
The Company believes that the nature, amount, timing and uncertainty of its revenue and cash flows and how they are affected by economic factors are most appropriately depicted by (i) geographic region, based on the shipping location of the customer, and (ii) type of product or service provided.
Total revenue based on the disaggregation criteria described above is as follows (in thousands, except percentages):
| Year Ended December 31, | ||||||||||||||||
| 2025 | 2024 | |||||||||||||||
| Revenue | % of revenue | Revenue | % of revenue | |||||||||||||
| Revenue by geographic area | ||||||||||||||||
| United States | $ | 4,360 | 88 | % | $ | 3,266 | 74 | % | ||||||||
| Europe | 580 | 12 | % | 991 | 23 | % | ||||||||||
| Rest of the world | - | - | % | 134 | 3 | % | ||||||||||
| Total | $ | 4,940 | 100 | % | $ | 4,391 | 100 | % | ||||||||
| Revenue by type | ||||||||||||||||
| Products | $ | 4,746 | 96 | % | $ | 4,254 | 97 | % | ||||||||
| Rentals | 194 | 4 | % | 137 | 3 | % | ||||||||||
| Total | $ | 4,940 | 100 | % | $ | 4,391 | 100 | % | ||||||||
Revenue from products includes related services, which represented less than 10% of product revenue for both periods. In the year ended December 31, 2025, sales included $658,000 or 13% of total revenue to Serbia. In the year ended December 31, 2024, sales included $135,000 or 3%, $494,000 or 11% and $193,000 or 4% of total revenue to Canada, Serbia and Germany, respectively. Customer concentrations are disclosed in Note 6.
Contract assets. There were no contract assets, representing unbilled receivables where revenue has been recognized in advance of customer billings, as of December 31, 2025 and 2024.
Remaining Performance Obligations. Remaining Performance Obligations (“RPO”) comprise deferred revenue plus unbilled contract revenue. As of December 31, 2025 and 2024, there was no RPO.
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.