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Note 2 - Revenue Recognition
 12 Months Ended
Dec. 31, 2023
Notes to Financial Statements  
Revenue from Contract with Customer [Text Block]

NOTE 2: REVENUE RECOGNITION

 

The following table includes estimated revenue expected to be recognized in future periods related to performance obligations that are unsatisfied or partially unsatisfied at the end of the reporting period. The estimated revenues do not include amounts of royalties or unexercised contract renewals:

 

   

2024

    

2025

    

2026 and

thereafter

  

License and related revenues

   $ 4,903     $ 614     $ 111  

 

 

Disaggregation of revenue:

 

The following table provides information about disaggregated revenue by primary geography, use cases for the Company’s technology portfolio, and timing of revenue recognition:

 

   

Year ended December 31, 2022

   

Year ended December 31, 2023

  
   

Licensing and

related revenues

    

Royalties

   

Total

    

Licensing and

related revenues

    

Royalties

   

Total

  

Geography

                                                

United States

   $ 7,055     $ 7,100     $ 14,155     $ 3,845     $ 5,706     $ 9,551  

Europe and Middle East

     6,739       3,205       9,944       9,197       2,987       12,184  

Asia Pacific

     61,400       35,084       96,484       44,513       31,171       75,684  

Total

   $ 75,194     $ 45,389     $ 120,583     $ 57,555     $ 39,864     $ 97,419  
                                                 

Use cases for the Company’s technology portfolio

                                                

Connect (baseband for handset and other devices, Bluetooth, Wi-Fi and NB-IoT)

   $ 60,312     $ 33,890     $ 94,202     $ 49,910     $ 29,787     $ 79,697  

Sense & Infer ( sensor fusion, audio, sound, imaging, vision and AI)

     14,882       11,499       26,381       7,645       10,077       17,722  

Total

   $ 75,194     $ 45,389     $ 120,583     $ 57,555     $ 39,864     $ 97,419  
                                                 

Timing of revenue recognition

                                                

Products transferred at a point in time

   $ 62,053     $ 45,389     $ 107,442     $ 46,542     $ 39,864     $ 86,406  

Products and services transferred over time

     13,141       —       13,141       11,013       —       11,013  

Total

   $ 75,194     $ 45,389     $ 120,583     $ 57,555     $ 39,864     $ 97,419  

 

 

   

Year ended December 31, 2021

 
   

Licensing and

related revenues

    

Royalties

   

Total

  

Geography

                        

United States

   $ 7,811     $ 10,033     $ 17,844  

Europe and Middle East

     2,938       3,938       6,876  

Asia Pacific and other

     53,204       35,908       89,112  

Total

   $ 63,953     $ 49,879     $ 113,832  
                         

Use cases for the Company’s technology portfolio

                        

Connect (baseband for handset and other devices, Bluetooth, Wi-Fi and NB-IoT)

   $ 50,359     $ 36,959     $ 87,318  

Sense & Infer (sensor fusion, audio, sound, imaging, vision and AI)

     13,594       12,920       26,514  

Total

   $ 63,953     $ 49,879     $ 113,832  
                         

Timing of revenue recognition

                        

Products transferred at a point in time

   $ 53,401     $ 49,879     $ 103,280  

Products and services transferred over time

     10,552       —       10,552  

Total

   $ 63,953     $ 49,879     $ 113,832  

 

 

Contract balances:

 

The following table provides information about trade receivables, unbilled receivables and contract liabilities from contracts with customers:

 

   

December 31, 2022

   

December 31, 2023

 
                 

Trade receivables

   $ 11,136     $ 8,433  

Unbilled receivables (associated with licensing and related revenue)

     8,436       9,735  

Unbilled receivables (associated with royalties)

     10,258       12,139  

Deferred revenues (short-term contract liabilities)

     3,098       3,018  

 

The Company receives payments from customers based upon contractual payment schedules; trade receivables are recorded when the right to consideration becomes unconditional, and an invoice is issued to the customer. Unbilled receivables associated with licensing and other include amounts related to the Company’s contractual right to consideration for completed performance objectives not yet invoiced. Unbilled receivables associated with royalties are recorded as the Company recognizes revenues from royalties earned during the year, but not yet invoiced, either by actual sales data received from customers, or, when applicable, by the Company’s estimation. Contract liabilities (deferred revenue) include payments received in advance of performance under the contract, and are realized with the associated revenue recognized under the contract.

 

During the year ended December 31, 2023, the Company recognized $2,746 that was included in deferred revenues (short-term contract liability) balance at January 1, 2023.

 

Practical expediency and exemptions:

 

The Company generally expenses sales commissions when incurred because the amortization period would have been less than one year. The Company records these costs within sales and marketing expenses on the Company’s consolidated statements of income (loss).

 

The Company does not assess whether a contract has a significant financing component if the expectation at contract inception is such that the period between payment by the customer and the transfer of the promised goods or services to the customer will be one year or less.

 

Discontinued operation:

 

The Company's revenues streams from Intrinsix chip design business comprises primarily of non-recurring engineering (“NRE”) revenues. Revenues that are derived from NRE chip design services are performance obligations that are recognized over time as the services are rendered. For time-and-materials contracts, the performance obligation is satisfied, and revenue is recognized over time as the services are performed. Generally, contracts call for billings on a time-and-materials basis; however, in instances when a fixed-fee contract is signed, revenue is recognized over time, based on an input method of labor costs expended, relative to total expected labor costs to complete the contract.

 

The Intrinsix business relies heavily on contracts with U.S. government prime contractors.