Note 15. Revenue

Customer Concentration

The customer concentration for balances greater than 10% of revenues and 10% of accounts receivables, net, respectively, are presented below:

 

 

 

Total Revenue

 

Accounts Receivable, Net

 

 

Year ended December 31,

 

December 31,

 

 

2025

 

2024

 

2025

 

2024

 

 

(as a percentage)

Customer 1

 

11.2%

 

<10%

 

<10%

 

—%

Customer 2

 

10.6%

 

11.3%

 

34.0%

 

<10%

Customer 3

 

11.4%

 

12.7%

 

—%

 

<10%

Customer 4

 

<10%

 

—%

 

16.2%

 

—%

Customer 5

 

<10%

 

23.0%

 

<10%

 

<10%

Customer 6

 

<10%

 

10.5%

 

<10%

 

<10%

Customer 7

 

—%

 

—%

 

—%

 

18.2%

Customer 8

 

—%

 

—%

 

—%

 

12.9%

Customer 9

 

—%

 

—%

 

—%

 

10.8%

 

Revenue by Geographic Area

The Company currently sells its products in the geographic regions as follows:

 

 

 

December 31,

 

 

 

2025

 

 

2024

 

 

 

(In thousands)

 

Americas

 

$

39,901

 

 

$

39,908

 

Europe

 

 

4,493

 

 

 

839

 

Other

 

 

1,579

 

 

 

256

 

Total

 

$

45,973

 

 

$

41,003

 

 

Contract Assets and Liabilities

There was $2.3 million of revenue recognized during the year ended December 31, 2025 included in contract liabilities as of December 31, 2024. There was $2.4 million of revenue recognized during the year ended December 31, 2024 included in contract liabilities as of December 31, 2023. The change in contract assets reflects the difference in timing between the Company's satisfaction of remaining performance obligations and the Company's contractual right to bill its customers. The Company had no material asset impairment charges related to contract assets in the periods presented.

Historical Timeline

Fiscal YearFiled
2025Mar 31, 2026Showing above
2024Mar 31, 2025
2023Apr 3, 2024
2022Mar 20, 2023
2021Mar 28, 2022

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.