SS Innovations International, Inc. Revenue Disclosure
NOTE 13 – DEFERRED REVENUE
Contract liabilities (deferred revenue) consist of advance billings and billing in excess of revenues recognized. Deferred revenue also includes the amount for which services have been rendered but other conditions of revenue recognition are not met, for example, where the Company does not have an enforceable contract.
The revenue attributable to the warranty is recognized over the period to which it relates. During the year ended December 31, 2024, Company had sold 36 surgical robotic systems. The revenues attributable to warranty for the agreed warranty period in respect of each of the sales contract is deferred for recognition over the period to which it relates.
In case of systems sold on a deferred payment basis, the present value of the invoiced system sales, realizable over the deferred payment period, is recognized as system sales. The difference between the invoiced amount and its present value is adjusted (reduced) in the accounts receivable balance. This difference is recorded as interest income under other income, with a corresponding impact on accounts receivable over the collection period of contract. The Company recorded $335,222 and $151,497 as interest income on account of deferred financing component during the years ended December 31, 2024, and 2023 respectively.
| For year ended | For year ended | |||||||
| December 31, 2024 | December 31, 2023 | |||||||
| Deferred revenue— beginning of period | 1,095,480 | 43,917 | ||||||
| Additions | 5,685,704 | 1,053,329 | ||||||
| Net changes in liability for pre-existing contracts | 6,781,184 | 1,097,246 | ||||||
| Revenue recognized for warranty sales | 177,518 | 1,766 | ||||||
| Revenue recognized for instrument sales | 151,111 | |||||||
| Deferred revenue— end of period | 6,452,555 | 1,095,480 | ||||||
| As of December 31, 2024 | As of December 31, 2023 | |||||||
| Deferred revenue expected to be recognized in: | ||||||||
| One year or less | 1,278,602 | 156,330 | ||||||
| More than One year | 5,173,953 | 939,150 | ||||||
| 6,452,555 | 1,095,480 | |||||||
The following table disaggregates our revenue by major source:
| Year ended December 31, 2024 | Year ended December 31, 2023 | |||||||
| System Sales | 19,457,767 | 5,225,777 | ||||||
| Instruments Sale | 942,548 | 647,766 | ||||||
| Warranty Sales | 177,518 | 1,771 | ||||||
| Lease income | 71,695 | |||||||
| Total revenue | 20,649,528 | 5,875,314 | ||||||
Revenues for each of the two years in the period ended December 31, 2024 and 2023 by geographic region (determined based upon customer domicile), were as follows:
| Year ended December 31, 2024 | Year ended December 31, 2023 | |||||||
| India | 19,083,703 | 5,362,814 | ||||||
| Nepal | 501,719 | - | ||||||
| UAE | 512,500 | |||||||
| Indonesia | 595,903 | |||||||
| South America | 468,203 | - | ||||||
| 20,649,528 | 5,875,314 | |||||||
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.