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REVENUE FROM CONTRACTS WITH CUSTOMERS
 9 Months Ended
Sep. 30, 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 September 30,Nine Months Ended September 30,
2025202420252024
Type of products or services
System sales$1,843 $— $15,515 $— 
QCaaS1,384 1,599 4,158 5,071 
Professional services476 271 2,038 1,305 
Other revenue*36 — 124 142 
Total revenue$3,739 $1,870 $21,835 $6,518 
Timing of revenue recognition
Revenue recognized over time$3,733 $1,856 $9,152 $6,480 
Revenue recognized at a point in time6 14 12,683 38 
Total revenue$3,739 $1,870 $21,835 $6,518 
*Other revenue includes support and maintenance and printed circuit board sales.
During the three months ended September 30, 2025, the Company recognized revenue of $1.8 million from a system upgrade project, which was classified under system sales.

Geographic Information
The following table presents a summary of revenue by geography for the three and nine months ended September 30, 2025 and 2024, based on customer location (in thousands):
Three Months Ended September 30,Nine Months Ended September 30,
2025202420252024
Germany$1,972 $483 $15,962 $1,488 
United States715 484 1,922 1,845 
Japan266 175 904 610 
Canada192 230 764 775 
Other594 498 2,283 1,800 
Total revenue$3,739 $1,870 $21,835 $6,518 
"Other" includes the rest of Europe, the Middle East, the rest of Asia and Australia where the revenue from a single country is not greater than 10% of total consolidated revenue. In accordance with Company policy, 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, 2025 and 2024.
Three Months Ended September 30,Nine Months Ended September 30,
2025202420252024
Customer A51 %19 %72 %18 %
Customer B— %11 %— %— %
As of each of September 30, 2025 and December 31, 2024, there were two and three significant customers, respectively, that comprised ten percent or more of outstanding accounts receivable balances.
Contract balances
The following table provides information about accounts receivable, contract assets and liabilities as of September 30, 2025 and December 31, 2024 (in thousands):
As of September 30, 2025As of December 31, 2024
Trade accounts receivable and contract assets, net:
Trade accounts receivable, net of allowance for credit losses and excluding unbilled receivables$1,212 $867 
Contract asset for unbilled receivables715 553 
Contract acquisition costs163 174 
Total contract assets$2,090 $1,594 
Contract liabilities:
Deferred revenue, current$3,389 $18,686 
Deferred revenue, non-current629 670 
Customer deposit1
— 48 
Total contract liabilities$4,018 $19,404 
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 immaterial and $0.2 million as of September 30, 2025 and December 31, 2024. During the three months and nine months ended September 30, 2025, the Company recorded zero and $0.1 million write-offs of accounts receivable deemed uncollectible, respectively. During the three months and nine months ended September 30, 2024, the Company recorded minimal 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 $18.2 million and $1.8 million for the nine months ended September 30, 2025 and 2024, respectively.
Changes in deferred revenue from contracts with customers were as follows (in thousands):
Nine Months Ended September 30,
20252024
Balance at beginning of period$19,356 $2,748 
Deferral of revenue6,510 6,768 
Recognition of deferred revenue(21,848)(6,549)
Balance at end of period$4,018 $2,967 
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, 2025, the aggregate amount of remaining performance obligations that were unsatisfied or partially unsatisfied related to customer contracts was $2.9 million, of which approximately 69% is expected to be recognized to revenue in the next 12 months, 85% is expected to be recognized to revenue in the next two years, and 95% 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.