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Note 3 - Revenue Recognition
 9 Months Ended
Sep. 30, 2025
Notes to Financial Statements  
Revenue from Contract with Customer [Text Block]

Note 3.  Revenue Recognition

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Disaggregation of Revenue

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Revenue is classified based on the location where the product is manufactured. For additional information on the disaggregated revenues by geographical region, see Note 17, "Segment and Geographic Information."

 

Revenue is also classified by major product categories and is presented below (in thousands):

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Three months ended September 30,

 
      

% of

      

% of

 
  

2025

  

Revenue

  

2024

  

Revenue

 

CATV

 $70,602   59.5% $20,947   32.2%

Data Center

  43,935   37.0%  40,945   62.8%

Telecom

  3,742   3.2%  2,798   4.3%

Other

  351   0.3%  461   0.7%

Total Revenue

 $118,630   100.0% $65,151   100.0%

 

  

Nine months ended September 30,

 
      

% of

      

% of

 
  

2025

  

Revenue

  

2024

  

Revenue

 

CATV

 $191,123   59.5% $35,501   23.8%

Data Center

  120,775   37.5%  104,283   69.9%

Telecom

  8,618   2.7%  7,445   5.0%

Other

  925   0.3%  1,865   1.3%

Total Revenue

 $321,441   100.0% $149,094   100.0%

 

Unearned Revenue

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We record unearned revenues when cash payments are received or due in advance of our performance, including amounts which are refundable. Unearned revenues solely relate to statement of work with Microsoft regarding contract prices allocated to the performance obligations that are unsatisfied, or partially unsatisfied, as of the balance sheet dates. Unearned revenue balance as of  September 30, 2025 and  December 31, 2024 were both zero. For the three months ended September 30, 2025 and 2024, revenue recognized from the unearned revenue balance was $0 and $0.1 million, respectively. For the nine months ended September 30, 2025 and 2024, revenue recognized from the unearned revenue balance was $0 and $0.4 million, respectively. The unearned revenue was as follows for the periods indicated (in thousands):

   

                 
  

Three months ended September 30,

  

Nine months ended September 30,

 
  

2025

  

2024

  

2025

  

2024

 

Unearned revenue, beginning of period

 $—  $1,570  $—  $1,803 

Additional unearned revenue

  —   —   —   — 

Revenue recognized

  —   131   —   364 

Unearned revenue, end of period

 $—  $1,439  $—  $1,439 

 

Customer Warrant

 

On March 13, 2025, the Company issued a warrant (the "Customer Warrant") to a wholly-owned subsidiary of Amazon.com, Inc. to purchase up to an aggregate of 7,945,399 shares of the Company's common stock ("Warrant Shares") at an exercise price of $23.6956 per share. The Customer Warrant has a contractual term of 10 years. At the time of the issuance, the Customer Warrant is exercisable to purchase 1,324,233 Warrant Shares. The remaining 6,621,166 Warrant Shares may vest over the next 10 years, dependent on aggregate purchases by or on behalf of Amazon and its affiliates of $4 billion of the Company's products over this time period. The Company accounts for the Customer Warrant as an equity classified share-based consideration to a customer and will recognize the grant-date fair value of the Customer Warrant as a reduction of revenue from Amazon as the related goods or services are transferred.The grant date fair value of the Customer Warrant was determined to be $12.64 per share, using the Black-Scholes-Merton option pricing model. 

 

The per share grant date fair value of the Customer Warrant was estimated using the following assumptions:

 

  At Grant Date 
Expected volatility  80.00%
Weighted-average expected term (in years)  10 
Risk-free interest rate  4.23%
Dividend yield  —%
Fair value per ordinary share at grant date $15.87 

 

For the nine months ended September 30, 2025, the Company recognized approximately $4 million of revenue associated with customer arrangements that included the issuance of warrants. The impact of these arrangements on the Company’s consolidated financial statements was not material for the periods presented. As of September 30, 2025, the Company recorded other current asset of $1.7 million and other noncurrent asset of $15.0 million, representing the aggregate grant-date fair value of 1,324,233 Warrant Shares vested at the issuance.