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Revenue
 3 Months Ended
Mar. 31, 2026
Revenue [Abstract]  
REVENUE

NOTE 3 – REVENUE

 

The following table presents our disaggregated revenues by type, timing and geographical region.

 

   Three Months Ended
March 31,		 
(dollars in thousands)  2026   2025 
Type of Revenue        
Product revenue  $38,368   $3,224 
Service revenue   9,323    809 
Development revenue   2,431    215 
Total revenues  $50,122   $4,248 
           
Timing of Revenue          
Revenue recognized point in time  $40,562   $3,984 
Revenue recognized over time   9,560    264 
Total revenue  $50,122   $4,248 
           
Geographical region          
Israel  $21,598   $2,488 
Europe   12,071    
-
 
Asia - Other   12,000    
-
 
North America   3,313    216 
United Arab Emirates   305    1,533 
Other Countries   835    11 
Total revenues  $50,122   $4,248 

Contract Assets and Liabilities

 

The Company recognizes a receivable or contract asset when we perform a service or transfer a good in advance of receiving consideration. A receivable is recorded when our right to consideration is unconditional and only the passage of time is required before payment of that consideration is due. A contract asset is recorded when we have recognized revenue over time in accordance with meeting our performance obligation but are unable to invoice the customer yet based on the contractual invoicing terms. The contract asset is reclassified to a receivable when the right to consideration becomes unconditional. Contract assets are included in other current assets on the condensed consolidated balance sheets. The table below details the activity in our contract assets during the three months ended March 31, 2026 and the year ended December 31, 2025.

 

(dollars in thousands)  Three Months
Ended
March 31,
2026		   Year Ended
December 31,
2025		 
Balance, beginning of period  $3,171   $206 
Contract assets recognized   15,488    8,476 
Reclassification to accounts receivable, net   (2,676)   (5,511)
Balance, end of period  $15,983   $3,171 

 

The Company recognizes a contract liability (deferred revenue) when we receive consideration from a customer, or if we have the unconditional right to consideration (i.e., a receivable), prior to satisfying the performance obligation. A contract liability is our obligation to transfer goods or services to a customer for which we have received consideration, or an amount of consideration is due from the customer. The table below details the activity in our contract liabilities during the three months ended March 31, 2026, and the year ended December 31, 2025.

 

(dollars in thousands)  Three Months
Ended
March 31,
2026		   Year Ended
December 31,
2025		 
Balance, beginning of period  $8,501   $329 
Contract liabilities acquired in business combinations   14,253    7,374 
Effect of deconsolidation of subsidiary   (337)   
-
 
Additions   4,892    9,542 
Recognized as revenue   (7,477)   (8,744)
Balance, end of period  $19,832   $8,501 

 

Revenue recognized during the three months ended March 31, 2026 and 2025 that was included in the contract liability opening balance, was $2.2 million and $12 thousand, respectively. As of March 31, 2026 and December 31, 2025, $205 thousand and $472 thousand of the contract liability balance represents long-term deferred revenue and is included in other liabilities on the consolidated balance sheets, respectively.