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Note 2 - Revenue Recognition
 12 Months Ended
Dec. 31, 2024
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:

 

   

2025

    

 

2026

    

2027 and

thereafter

  

License and related revenues

   $ 16,265     $ 2,380     $ 369  

 

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, 2023

    

Year ended December 31, 2024

  
   

Licensing and

related revenues

    

Royalties

   

Total

    

Licensing and

related revenues

    

Royalties

   

Total

  

Geography

                                                

United States

   $ 3,845     $ 5,706     $ 9,551     $ 14,988     $ 5,316     $ 20,304  

Europe and Middle East

     9,197       2,987       12,184       8,486       4,310       12,796  

Asia Pacific

     44,513       31,171       75,684       36,512       37,314       73,826  

Other

     —       —       —       13       —       13  

Total

   $ 57,555     $ 39,864     $ 97,419     $ 59,999     $ 46,940     $ 106,939  
                                                 

Use cases for the Company’s technology portfolio

                                                

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

   $ 49,910     $ 29,787     $ 79,697     $ 53,607     $ 36,426     $ 90,033  

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

     7,645       10,077       17,722       6,392       10,514       16,906  

Total

   $ 57,555     $ 39,864     $ 97,419     $ 59,999     $ 46,940     $ 106,939  
                                                 

Timing of revenue recognition

                                                

Products transferred at a point in time

   $ 46,542     $ 39,864     $ 86,406     $ 50,655     $ 46,940     $ 97,595  

Products and services transferred over time

     11,013       —       11,013       9,344       —       9,344  

Total

   $ 57,555     $ 39,864     $ 97,419     $ 59,999     $ 46,940     $ 106,939  

 

   

Year ended December 31, 2022

 
   

Licensing and related revenues

    

Royalties

   

Total

  

Geography

                        

United States

   $ 7,055     $ 7,100     $ 14,155  

Europe and Middle East

     6,739       3,205       9,944  

Asia Pacific and other

     61,400       35,084       96,484  

Total

   $ 75,194     $ 45,389     $ 120,583  
                         

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  

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

     14,882       11,499       26,381  

Total

   $ 75,194     $ 45,389     $ 120,583  
                         

Timing of revenue recognition

                        

Products transferred at a point in time

   $ 62,053     $ 45,389     $ 107,442  

Products and services transferred over time

     13,141       —       13,141  

Total

   $ 75,194     $ 45,389     $ 120,583  

 

Contract balances:

 

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

 

 

   

December 31,

2023

    

December 31,

2024

 
                 

Currents assets (classified under “Trade receivables”):

                

Trade receivables

   $ 8,433     $ 15,969  

Unbilled receivables (associated with licensing and related revenue)

     9,735       8,266  

Unbilled receivables (associated with royalties)

     12,139       12,974  

Total current assets

     30,307       37,209  
                 

Long-term assets (classified under “Other long-term assets”):

                

Unbilled receivables (associated with licensing and related revenue)

     —       2,583  
                 

Deferred revenues (short-term contract liabilities)

     3,018       3,599  

 

 

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.

 

Payment terms and conditions vary by contract type, although terms generally include a requirement of payment within 30 to 60 days.

 

During the year ended December 31, 2024, the Company recognized $2,225 that was included in deferred revenues (short-term contract liability) balance at January 1, 2024.

 

Costs to obtain a contract:

 

As of December 31, 2024, the Company had a remaining $467 contract cost asset related to the incremental costs of obtaining the contract arising from sales commissions. During the year ended December 31, 2024, the Company recognized amortization of contract costs of $257. Contract cost asset and amortization were immaterial for the years ended December 31, 2023 and 2022. The Company records these costs within sales and marketing expenses on the Company’s consolidated statements of income (loss).

 

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.