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REVENUE FROM CONTRACTS WITH CUSTOMERS
 9 Months Ended
Sep. 30, 2024
Revenue from Contract with Customer [Abstract]  
REVENUE FROM CONTRACTS WITH CUSTOMERS
3. REVENUE FROM CONTRACTS WITH CUSTOMERS
Disaggregation of revenue
Nature of Products and Services
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,Nine Months Ended September 30,
2024202320242023
Type of products or services
QCaaS$1,599 $1,132 $5,071 $3,333 
Professional services271 1,338 1,305 2,234 
Other revenue*— 92 142 285 
Total revenue$1,870 $2,562 $6,518 $5,852 
Timing of revenue recognition
Revenue recognized over time$1,856 $2,506 $6,480 $5,713 
Revenue recognized at a point in time14 56 38 139 
Total revenue$1,870 $2,562 $6,518 $5,852 
*Other revenue includes support, maintenance and printed circuit board sales. For the three and nine months ended September 30, 2023, maintenance revenues have been reclassified from professional services to other revenue.
Geographic Information
The following table presents a summary of revenue by geography for the three and nine months ended September 30, 2024 and 2023, based on customer location (in thousands):
Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
United States$484 $1,083 $1,845 $1,814 
Germany483 287 1,488 865 
Canada230 — 775 — 
Japan175 299 610 920 
Switzerland197 311 501 686 
Other301 582 1,299 1,567 
Total revenue$1,870 $2,562 $6,518 $5,852 
"Other" includes the rest of Europe, the Middle East, Africa, Asia 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
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 period end.
The tables below present the significant customers on a percentage of total revenue basis for the three and nine months ended September 30, 2024 and 2023.
Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
Customer A— %13 %— %14 %
Customer B19 %— %18 %11 %
Customer C— %— %— %10 %
Customer D— %12 %— %12 %
Customer E11 %12 %— %12 %
As of each of September 30, 2024 and 2023, there were three and three significant customers, respectively, that comprised ten percent or more of outstanding accounts receivable balances.
Contract balances
The following table provides information about account receivable, contract assets and liabilities as of September 30, 2024 and December 31, 2023 (in thousands):
As of September 30, 2024As of December 31, 2023
Trade accounts receivable and contract assets, net:
Trade account receivable, excluding unbilled receivables$867 $644 
Contract asset for unbilled receivables589 1,008 
Contract acquisition costs200 — 
Total contract assets$1,656 $1,652 
Contract liabilities:
Deferred revenue, current$2,910 $2,669 
Deferred revenue, non-current57 79 
Customer deposit1
45 45 
Total contract liabilities$3,012 $2,793 
1Customer deposit is included in accrued expenses and other current liabilities on the condensed consolidated balance sheets.
The allowance for credit losses related to trade accounts receivable was $0.2 million as of September 30, 2024 and December 31, 2023. Write-offs were immaterial during the three months ended September 30, 2024 and 2023.
The revenue recognized in the condensed consolidated statements of operations and comprehensive loss that was included in the contract liability balance at the beginning of each period was $1.8 million and $1.7 million for the nine months ended September 30, 2024 and 2023, respectively.
Changes in deferred revenue from contracts with customers were as follows (in thousands):
Nine Months Ended September 30,
20242023
Balance at beginning of period$2,748 $1,790 
Deferral of revenue6,768 4,353 
Recognition of deferred revenue(6,549)(3,874)
Balance at end of period$2,967 $2,269 
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, 2024, the aggregate amount of remaining performance obligations that were unsatisfied or partially unsatisfied related to customer contracts was $4.0 million, of which approximately 64% is expected to be recognized to revenue in the next 12 months, 95% is expected to be recognized to revenue in the next two years, 100% is expected to be recognized within three years. Revenues allocated to remaining performance obligations represents the transaction price of noncancellable orders for which service has not been performed, which include deferred revenue and the amounts that will be invoiced and recognized as revenues in future periods from open contracts and excludes unexercised renewals.