Contract Liabilities
During the years ended December 31, 2025, and 2024, the Company recognized revenue related to these contract liabilities of $172 thousand and $95 thousand, respectively, that were included in the beginning contract liability balances for each of those periods.
The following table summarizes the changes in contract liabilities:
| | | | | | | | | | | |
| Year Ended December 31, |
| (in thousands) | 2025 | | 2024 |
| Beginning balance | $ | 493 | | | $ | 439 | |
| New service agreements | 768 | | | 149 | |
| Revenue recognized | (172) | | | (95) | |
| Total Contract Liabilities | $ | 1,089 | | | $ | 493 | |
As of December 31, 2025, the Company expects to recognize revenue from its contract liabilities as follows:
| | | | | |
| (in thousands) | Amount |
| 2026 | $ | 388 | |
| 2027 | 495 | |
| 2028 and thereafter | 206 | |
| Total Contract Liabilities | $ | 1,089 | |
Revenue
The disaggregation of revenue is based on type. The following table presents revenue from contracts with customers:
| | | | | | | | | | | |
| (in thousands) | Year ended December 31, 2025 | | Year ended December 31, 2024 |
| Consumables, parts, and accessories revenue | $ | 25,804 | | | $ | 21,116 | |
| System revenue | 17,849 | | | 11,072 | |
| Extended warranty | 172 | | | 95 | |
| License fees | 20 | | | 45 | |
| Other | 206 | | | 306 | |
| Total Revenue | $ | 44,051 | | | $ | 32,634 | |
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.