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Revenue from contracts with customers | 9 Months Ended | 12 Months Ended
--- | --- | ---
Sep. 30, 2022 | Dec. 31, 2021
Revenue from contracts with customers |
4. | Revenue from contracts with customers
Disaggregation of revenue The following table depicts the disaggregation of revenue by type of products or services and timing of transfer of products or services (in thousands):
|  | Three months ended September 30, |
|  | 2022 |  |  | 2021 |
Type of products or services |  |  |  |  |  |  |  |
QCaaS |  | $ | 1,346 |  |  | $ | 980 |
Professional services |  |  | 347 |  |  |  | 306 |
Other revenue |  |  | 2 |  |  |  | 21 |
Total revenue, net |  | $ | 1,695 |  |  | $ | 1,307 |
Timing of revenue recognition |  |  |  |  |  |  |  |
Revenue recognized over the time |  | $ | 1,660 |  |  | $ | 1,247 |
Revenue recognized at a point in time |  |  | 35 |  |  |  | 60 |
Total revenue, net |  | $ | 1,695 |  |  | $ | 1,307 |
|  | Nine months ended September 30, |
|  | 2022 |  |  | 2021 |
Type of products or services |  |  |  |  |  |  |  |
QCaaS |  | $ | 3,905 |  |  | $ | 3,063 |
Professional services |  |  | 812 |  |  |  | 736 |
Other revenue |  |  | 61 |  |  |  | 54 |
Total revenue, net |  | $ | 4,778 |  |  | $ | 3,853 |
Timing of revenue recognition |  |  |  |  |  |  |  |
Revenue recognized over the time |  | $ | 4,618 |  |  | $ | 3,773 |
Revenue recognized at a point in time |  |  | 160 |  |  |  | 80 |
Total revenue, net |  | $ | 4,778 |  |  | $ | 3,853 |
Other revenue includes printed circuit board sales. Revenue by geographical markets is presented in Note 13 - Geographic areas. Contract balances The following table provides information about account receivable, contract assets and liabilities as of September 30, 2022 and December 31, 2021 (in thousands):
|  | September 30, |  |  | December 31, |
|  | 2022 |  |  | 2021 |
Contract assets: |  |  |  |  |  |  |  |
Trade account receivable |  | $ | 740 |  |  | $ | 421 |
Unbilled receivables, which are included in ‘Prepaid expenses and other current assets’ |  |  | 252 |  |  |  | 17 |
Total contract assets |  |  | 992 |  |  |  | 438 |
Contract liabilities: |  |  |  |  |  |  |  |
Deferred revenue, current |  |  | 1,989 |  |  |  | 2,665 |
Deferred revenue, noncurrent |  |  | — |  |  |  | 54 |
Customer deposit, which are included in ‘Accrued expenses and other current liabilities’ |  |  | 21 |  |  |  | 21 |
Total contract liabilities |  | $ | 2,010 |  |  | $ | 2,740 |
Changes in deferred revenue from contracts with customers were as follows (in thousands):
|  | September 30, |  |  | December 31, |
|  | 2022 |  |  | 2021 |
Balance at beginning of period |  | $ | 2,719 |  |  | $ | 4,713 |
Deferral of revenue |  |  | 3,554 |  |  |  | 4,092 |
Recognition of deferred revenue |  |  | (4,284 | ) |  |  | (6,086 | )
Balance at end of period |  | $ | 1,989 |  |  | $ | 2,719 |
Remaining performance obligations A significant number of the Company’s product and service sales are short-term in nature with a contract term of one year or less. For those contracts, the Company has utilized the practical expedient in ASC 606-10-50-14 exempting the Company from disclosure of the transaction price allocated to remaining performance obligations if the performance obligation is part of a contract that has an original expected duration of one year or less. As of September 30, 2022, the aggregate amount of remaining performance obligations that were unsatisfied or partially unsatisfied related to customer contracts was $2.0 million. This amount included deferred revenue on the Company’s condensed consolidated balance sheets, of which approximately 99% is expected to be recognized to revenue in the next 12 months. As of December 31, 2021, the aggregate amount of remaining performance obligations related to customer contracts that are unsatisfied or partially unsatisfied was $2.7 million which included deferred revenue on the Company’s condensed consolidated balance sheets, of which approximately 98% was expected to be recognized to revenue in the next 12 months. |
DWave System [Member] |  |
Revenue from contracts with customers |  |
3. | Revenue from contracts with customers
Disaggregation of revenue The following table depicts the disaggregation of revenue by type of products or services and timing of transfer of products or services (in thousands):
|  | Years ended December 31, |
|  | 2021 |  |  | 2020 |
Type of products or services |  |  |  |  |  |  |  |
QCaaS |  | $ | 4,424 |  |  | $ | 4,313 |
Professional services |  |  | 1,786 |  |  |  | 426 |
Other revenue |  |  | 69 |  |  |  | 421 |
Total revenue, net |  | $ | 6,279 |  |  | $ | 5,160 |
Timing of revenue recognition |  |  |  |  |  |  |  |
Revenue recognized over time |  | $ | 6,090 |  |  | $ | 4,688 |
Revenue recognized at a point in time |  |  | 189 |  |  |  | 472 |
Total revenue, net |  | $ | 6,279 |  |  | $ | 5,160 |
Other revenue includes printed circuit board sales. Revenue by geographical markets is presented in Note 16 - Geographic areas. Contract balances The following table provides information about account receivable, contract assets and liabilities as of December 31, 2021, and 2020 (in thousands):
|  | December 31, |
|  | 2021 |  |  | 2020 |
Contract assets: |  |  |  |  |  |  |  |
Trade account receivable, net |  | $ | 421 |  |  | $ | 590 |
Unbilled receivables, which are included in ‘Prepaid expenses and other current assets’ |  |  | 17 |  |  |  | 10 |
Total contract assets |  |  | 438 |  |  |  | 600 |
Contract liabilities: |  |  |  |  |  |  |  |
Deferred revenue, current |  |  | 2,665 |  |  |  | 4,713 |
Deferred revenue, noncurrent |  |  | 54 |  |  |  | — |
Customer deposit, which are included in ‘Accrued expenses and other current liabilities’ |  |  | 21 |  |  |  | — |
Total contract liabilities |  |  | 2,740 |  |  |  | 4,713 |
Changes in deferred revenue from contracts with customers were as follows (in thousands):
|  | Years ended December 31, |
|  | 2021 |  |  | 2020 |
Balance at beginning of period |  | $ | 4,713 |  |  | $ | 4,921 |
Deferral of revenue |  |  | 4,092 |  |  |  | 4,513 |
Recognition of deferred revenue |  |  | (6,086 | ) |  |  | (4,721 | )
Balance at the end of period |  | $ | 2,719 |  |  | $ | 4,713 |
Remaining performance obligations A significant number of the Company’s product and service sales are short-term in nature with a contract term of one year or less. For those contracts, the Company has utilized the practical expedient in ASC 606-10-50-14 exempting the Company from disclosure of the transaction price allocated to remaining performance obligations if the performance obligation is part of a contract that has an original expected duration of one year or less. As of December 31, 2021, the aggregate amount of remaining performance obligations that were unsatisfied or partially unsatisfied related to customer contracts was $2.7 million. This amount included deferred revenue on the Company’s consolidated balance sheets, of which approximately 98% is expected to be recognized to revenue in the next 12 months. As of December 31, 2020, the aggregate amount of remaining performance obligations that are unsatisfied or partially unsatisfied related to customer contracts was $4.7 million which included deferred revenue on the Company’s consolidated balance sheets, of which approximately 100% was expected to be recognized to revenue in the next 12 months.

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- Definition The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -URI https://asc.fasb.org/topic&trid=49130388 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 10 -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130551-203045 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 13 -Subparagraph (b)(2) -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130556-203045 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 9 -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130550-203045 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (e) -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (d) -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 15 -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130558-203045 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (c) -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045 + Details
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