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Revenue from contracts with customers
9 Months Ended
Sep. 30, 2023
Revenue from Contract with Customer [Abstract]  
Revenue from contracts with customers
5. 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,
20232022
Type of products or services
QCaaS$1,132 $1,346 
Professional services1,421 347 
Other revenue
Total revenue$2,562 $1,695 
Timing of revenue recognition
Revenue recognized over time$2,506 $1,660 
Revenue recognized at a point in time56 35 
Total revenue$2,562 $1,695 
Nine months ended September 30,
20232022
Type of products or services
QCaaS$3,333 $3,905 
Professional services2,482 812 
Other revenue37 61 
Total revenue$5,852 $4,778 
Timing of revenue recognition
Revenue recognized over time$5,713 $4,618 
Revenue recognized at a point in time139 160 
Total revenue$5,852 $4,778 
Other revenue includes training and printed circuit board sales.
The following tables present a summary of revenue by geography, based on the addresses of our customers, for the three and nine months ended September 30, 2023 and 2022 (in thousands):
Three months ended September 30,
20232022
United States$1,083 $951 
Japan299 293 
Germany287 237 
Switzerland311 — 
Other582 214 
Total revenue$2,562 $1,695 

Nine Months Ended September 30,
20232022
United States$1,814 $2,461 
Japan920 1,008 
Germany865 757 
Switzerland686 — 
Other1,567 552 
Total revenue$5,852 $4,778 
"Other" includes the rest of Europe, the Middle East, Africa, Asia, Canada and Australia where the revenue from a single country is not greater than 10% of total consolidated revenue. The Company has not had any sales in China, Russia or Ukraine.
Significant customers
The Company had significant customers during the three and nine months ended September 30, 2023 and 2022. A significant customer is defined as one that comprises up to ten percent or more of total revenues in a particular year or ten percent of outstanding accounts receivable balance as of the year end.
The tables below present the significant customers on a percentage of total revenue basis for the three and nine months ended September 30, 2023 and 2022.
Three months ended September 30,
20232022
Customer A13 %15 %
Customer B%11 %
Customer C— %10 %
Customer D12 %— %
Customer E12 %— %
Nine Months Ended September 30,
20232022
Customer A%13 %
Customer B12 %13 %
Customer C12 %— %
As of September 30, 2023 and December 31, 2022, there were three and two significant customers that comprised ten percent or more of outstanding accounts receivable balances, respectively.
All revenues derived from major customers above are located in the United States, Germany and other European countries during the three and nine month period ended September 30, 2023 and the United States and Germany during the three and nine month period ended September 30, 2022.
Contract balances
The following table provides information about account receivable, contract assets and liabilities as of September 30, 2023 and December 31, 2022 (in thousands):
September 30,December 31,
20232022
Contract assets:
Trade accounts receivable, excluding unbilled receivables$395 $757 
Unbilled receivables1
368 58 
Total contract assets$763 $815 
Contract liabilities:
Deferred revenue, current$2,177 $1,781 
Deferred revenue, noncurrent92 
Customer deposit2
45 45 
Total contract liabilities$2,314 $1,835 
1 As of December 31, 2022, there was an immaterial amount of unbilled receivables classified as prepaid expenses and other current assets on the condensed consolidated balance sheets.
2Customer deposit is included in "Accrued expenses and other current liabilities" on the condensed consolidated balance sheets.
The allowance for doubtful accounts balance was nil as of September 30, 2023 and December 31, 2022, respectively.
Changes in deferred revenue from contracts with customers were as follows (in thousands):
Nine months ended September 30, 2023
Balance at beginning of period$1,790 
Deferral of revenue4,353 
Recognition of deferred revenue(3,874)
Balance at end of period$2,269 
Total deferred revenue as of December 31, 2022 was $1.8 million, of which $1.7 million was recognized as revenues during the nine months ended September 30, 2023.
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, 2023, the aggregate amount of remaining performance obligations that were unsatisfied or partially unsatisfied related to customer contracts was $4.4 million. This amount included deferred revenue on the Company’s condensed consolidated balance sheets, of which approximately 84% is expected to be recognized to revenue in the next 12 months.