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Note 5 - Revenue Recognition
 3 Months Ended
Mar. 31, 2024
Notes to Financial Statements  
Revenue from Contract with Customer [Text Block]

NOTE 5:

REVENUE RECOGNITION

 

Under ASC No. 606, “Revenue from Contracts with Customers” (“ASC 606”), an entity recognizes revenue when or as it satisfies a performance obligation by transferring intellectual property (“IP”) licenses or services to the customer, either at a point in time or over time. The Company recognizes most of its revenues at a point in time upon delivery when the customer accepts control of the IP. The Company recognizes revenue over time on significant license customization contracts that are in the scope of ASC 606 by using cost inputs to measure progress toward completion of its performance obligations.

 

Revenues that are derived from the sale of a licensee’s products that incorporate the Company’s IP are classified as royalty revenues. Royalty revenues are recognized during the quarter in which the sale of the product incorporating the Company’s IP occurs. Royalties are calculated either as a percentage of the revenues received by the Company’s licensees on sales of products incorporating the Company’s IP or on a per unit basis, as specified in the agreements with the licensees. When the Company does not receive actual sales data from the customer prior to the finalization of its financial statements, royalty revenues are recognized based on the Company’s estimation of the customer’s sales during the quarter.

 

 

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:

 

   

Remainder

of 2024

    

2025

    

2026 and

thereafter

  

Licensing and related revenues

   $ 4,028     $ 1,015     $ 322  

 

Disaggregation of revenue:

 

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

 

 

   

Three months ended March 31, 2024

(unaudited)

    

Three months ended March 31, 2023

(unaudited)

  
   

Licensing and related

revenues

    

Royalties

   

Total

    

Licensing and related

revenues

    

Royalties

   

Total

  

Geography

                                                

United States

   $ 383     $ 2,155     $ 2,538     $ 702     $ 1,650     $ 2,352  

Europe and Middle East

     601       911       1,512       1,950       859       2,809  

Asia Pacific

     10,417       7,592       18,009       15,121       5,505       20,626  

Other

     13       —       13       475       —       475  

Total

   $ 11,414     $ 10,658     $ 22,072     $ 18,248     $ 8,014     $ 26,262  
                                                 

Use cases for the Company’s technology portfolio

                                                

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

   $ 10,067     $ 7,939     $ 18,006     $ 15,924     $ 5,665     $ 21,589  

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

     1,347       2,719       4,066       2,324       2,349       4,673  

Total

   $ 11,414     $ 10,658     $ 22,072     $ 18,248     $ 8,014     $ 26,262  
                                                 

Timing of revenue recognition

                                                

Products transferred at a point in time

   $ 9,453     $ 10,658     $ 20,111     $ 14,621     $ 8,014     $ 22,635  

Products and services transferred over time

     1,961       —       1,961       3,627       —       3,627  

Total

   $ 11,414     $ 10,658     $ 22,072     $ 18,248     $ 8,014     $ 26,262  

 

 

Contract balances:

 

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

 

   

March 31,

2024

    

December 31,

2023

 
                 

Trade receivables

   $ 14,052     $ 8,433  

Unbilled receivables (associated with licensing and related revenue)

     9,600       9,735  

Unbilled receivables (associated with royalties)

     9,983       12,139  

Deferred revenues (short-term contract liabilities)

     2,479       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 quarter, 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 three months ended March 31, 2024, the Company recognized $1,179 that was included in deferred revenues (short-term contract liability) balance at January 1, 2024.