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Revenue
 12 Months Ended
Dec. 31, 2022
Revenue from Contract with Customer [Abstract]  
Revenue

Note 31.      Revenue

 

Nature of goods and services

 

The following is a description of the principal activities – separated by reportable segment – from which the Group generates its revenue. For more detailed information about reportable segments, see Note 37 - Segment information and geographic data.

 

-IoT Segment

 

The IoT segment of the Group principally generates revenue from the sale of semiconductors secure chips. Although they may be sold in connection with other services of the Group, they always represent distinct performance obligations.

 

The Group recognizes revenue when a customer takes possession of the chips, which usually occurs when the goods are delivered. Customers typically pay once goods are delivered.

 

-mPKI Segment

 

The mPKI Segment of the Group generates revenues from Digital Certificates, Software as a Service, Software license and Post-Contract Customer Support (PCS) for cybersecurity applications. Products and services are sold principally separately but may also be sold in bundled packages.

 

For bundled packages, the Group accounts for individual products and services separately if they are distinct – i.e. if a product or service is separately identified from other items in the bundled package and if a customer can benefit from it. The consideration is allocated between separate products and services in a bundle based on their stand-alone selling prices. The stand-alone selling prices are determined based on the list prices when available or estimated based on the Adjusted Market Assessment approach (e.g. licenses), or the Expected Cost-Plus Margin approach (e.g., PCS).

 

Product and services Nature, timing of satisfaction of performance obligations and significant payment terms
Certificates The Group recognizes revenue on a straight-line basis over the validity period of the certificate, which is usually one to three years. This period starts after the certificate has been issued by the Certificate Authority and may be used by the customer for authentication and signature, by checking the certificate validity against the Root of Trust which is maintained by the Group on its IT infrastructure. Customers pay for certificates when certificates are issued and invoiced. The excess of payments over recognized revenue is shown as deferred revenue.
   
SaaS The Group’s SaaS arrangement cover the provision of cloud-based certificate life-cycle-management solutions and signing and authentication solutions. The Group recognizes revenue on a straight-line basis over the service period which is usually yearly renewable. Customers usually pay ahead of quarterly or yearly service periods; the paid amounts which have not yet been recognized are shown as deferred revenue.
   
Software The Group provides software for certificates life-cycle management and signing and authentication solutions. The Group recognizes license revenue when the software has been delivered and PCS revenue over the service period which is usually one-year renewable. Customers pay upon delivery of the software or over the PCS.
   
Implementation, integration and other services

The Group provides services to implement and integrate multi-element cybersecurity solutions. Most of the time the solution elements are off-the-shelve non-customized components which represent distinct performance obligations. Implementation and integration services are payable when rendered, while other revenue elements are payable and recognized as per their specific description in this section.

 

WISeKey also provides hosting and monitoring of infrastructure services which are distinct performance obligations and are paid and recognized over the service period.

 

 

Disaggregation of revenue

 

The following table shows the Group’s revenues disaggregated by reportable segment and by product or service type:

 

Disaggregation of revenue Typical payment At one point in time   Over time   Total
USD'000   2022 2021 2020   2022 2021 2020   2022 2021 2020
IoT Segment                        
Secure chips Upon delivery 23,198 16,867 14,317   -    -    -      23,198 16,867 14,317
Total IoT segment revenue 23,198 16,867 14,317   -    -    -      23,198 16,867 14,317
mPKI Segment                        
Certificates Upon issuance -     -    -      111 153 175    111 153 175
Licenses and integration Upon delivery 107 607 287   149 -    -      256 607 287
SaaS, PCS and hosting Quarterly or yearly -    -    -      249 19 -      249 19 -   
Total mPKI segment revenue 107 607 287    509 172 175   616 779 462
Total Revenue from continuing operations 23,305 17,474 14,604   509 172 175   23,814 17,646 14,779

 

 

For the years ended December 31, 2022, 2021, and 2020 the Group recorded no revenues related to performance obligations satisfied in prior periods.

The following table shows the Group’s revenues disaggregated by geography, based on our customers’ billing addresses:

 

Net sales by region 12 months ended December 31,
USD'000 2022   2021   2020
IoT Segment          
Switzerland 751   406   278
Rest of EMEA 6,026   3,721   4,228
North America 13,609   10,631   8,217
Asia Pacific 2,745   2,062   1,526
Latin America 67   47   68
Total IoT segment revenue 23,198   16,867   14,317
mPKI Segment          
Switzerland 253   596   314
Rest of EMEA 234   98   93
North America 68   58   43
Asia Pacific -   -   -
Latin America 61   27   12
Total mPKI segment revenue 616   779   462
Total Net sales from continuing operations 23,814   17,646   14,779
*EMEA means Europe, Middle East and Africa          

 

 

 

Contract assets, deferred revenue and contract liability

 

Our contract assets, deferred revenue and contract liability consist of:

 

  As at December 31,   As at December 31,
USD'000 2022   2021
Trade accounts receivables      
Trade accounts receivable - IoT segment                            2,269                              2,655
Trade accounts receivable - mPKI segment                               194                                 165
Total trade accounts receivables                            2,463                              2,820
Contract assets                                  -                                       -   
Total contract assets                                  -                                       -   
Contract liabilities - current                               105                                 128
Contract liabilities - noncurrent                                   8                                   57
Total contract liabilities                               113                                 185
Deferred revenue      
Deferred revenue  - mPKI segment                               197                                 192
Total deferred revenue 197   192
Revenue from continuing operations recognized in the period from amounts included in the deferred revenue at the beginning of the year                               209                                 290

 

Increases or decreases in trade accounts receivable, contract assets, deferred revenue and contract liability were primarily due to normal timing differences between our performance and customer payments.

 

Remaining performance obligations

 

As of December 31, 2022, approximately USD 310,000 is expected to be recognized from remaining performance obligations for mPKI and IoT contracts. We expect to recognize revenue for these remaining performance obligations during the next two years approximately as follows:

 

Estimated revenue from remaining performance obligations
as at December 31, 2022 (USD'000)		  Total
2023 279
2024 31
Total remaining performance obligation
from continuing operations		 310