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REVENUE FROM CONTRACTS WITH CUSTOMERS | 3 Months Ended
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Mar. 31, 2025
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 March 31,
|  |  |  |  | 2025 |  | 2024 |  |
Type of products or services |  |  |  |  |  |  |  |  |
System sales |  |  |  |  | $ | 12,647 |  |  | $ | — |  |  |
QCaaS |  |  |  |  | 1,533 |  |  | 1,692 |  |  |
Professional services |  |  |  |  | 777 |  |  | 639 |  |  |
Other revenue* |  |  |  |  | 44 |  |  | 134 |  |  |
Total revenue |  |  |  |  | $ | 15,001 |  |  | $ | 2,465 |  |  |
Timing of revenue recognition |  |  |  |  |  |  |  |  |
Revenue recognized over time |  |  |  |  | $ | 2,337 |  |  | $ | 2,405 |  |  |
Revenue recognized at a point in time |  |  |  |  | 12,664 |  |  | 60 |  |  |
Total revenue |  |  |  |  | $ | 15,001 |  |  | $ | 2,465 |  |  |
*Other revenue includes support and maintenance and printed circuit board sales. Geographic Information The following table presents a summary of revenue by geography for the three months ended March 31, 2025 and 2024, based on customer location (in thousands):
|  |  | Three Months Ended March 31,
|  |  |  |  | 2025 |  | 2024 |  |
Germany |  |  |  |  | $ | 12,804 |  |  | $ | 723 |  |  |
United States |  |  |  |  | 497 |  |  | 512 |  |  |
Japan |  |  |  |  | 482 |  |  | 325 |  |  |
Canada |  |  |  |  | 304 |  |  | 195 |  |  |
Other |  |  |  |  | 915 |  |  | 710 |  |  |
Total revenue |  |  |  |  | $ | 15,001 |  |  | $ | 2,465 |  |  |
"Other" includes the rest of Europe, the Middle East, Asia, Australia and Africa 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 months ended March 31, 2025 and 2024.
|  |  | Three Months Ended March 31,
|  |  |  |  | 2025 |  | 2024 |  |
Customer A |  |  |  |  | 85 | % |  | 18 | % |  |
As of each of March 31, 2025 and 2024, there were three significant customers 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 March 31, 2025 and December 31, 2024 (in thousands):
| As of March 31, 2025 | As of | As of December 31, 2024
Trade accounts receivable and contract assets, net: |  |  |
Trade accounts receivable, net of allowance for doubtful accounts and excluding unbilled receivables | $ | 437 |  |  | $ | 867 |
Contract asset for unbilled receivables | 610 |  |  | 553 |
Contract acquisition costs | 365 |  |  | 174 |
Total contract assets | $ | 1,412 |  |  | $ | 1,594 |
Contract liabilities: |  |  |
Deferred revenue, current | $ | 5,549 |  |  | $ | 18,686 |
Deferred revenue, non-current | 700 |  |  | 670 |
Customer deposit 1 | 56 |  |  | 48 |
Total contract liabilities | $ | 6,305 |  |  | $ | 19,404 |
1 Customer 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 $0.1 million and $0.2 million as of March 31, 2025 and December 31, 2024. During the three months ended March 31, 2025 and 2024, the Company recorded immaterial write-offs of accounts receivable deemed uncollectible. 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 $14.3 million and $1.4 million for the three months ended March 31, 2025 and 2024, respectively. Changes in deferred revenue from contracts with customers were as follows (in thousands):
| Three Months Ended March 31,
| 2025 |  | 2024
Balance at beginning of period | $ | 19,356 |  |  | $ | 2,748 |
Deferral of revenue | 1,894 |  |  | 2,113 |
Recognition of deferred revenue | (15,001) |  |  | (2,463) |
Balance at end of period | $ | 6,249 |  |  | $ | 2,398 |
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 March 31, 2025, the aggregate amount of remaining performance obligations that were unsatisfied or partially unsatisfied related to customer contracts was $6.4 million, of which approximately 80% is expected to be recognized to revenue in the next 12 months, 93% is expected to be recognized to revenue in the next two years, 96% 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.

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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 -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 9 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-9 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 10 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-10 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-15 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Subparagraph (b)(2) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-13 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Name Accounting Standards Codification -Topic 606 -Publisher FASB -URI https://asc.fasb.org/606/tableOfContent + Details
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