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Note 4 - Revenue Recognition
 3 Months Ended
Mar. 31, 2025
Notes to Financial Statements  
Revenue from Contract with Customer [Text Block]

NOTE 4:

REVENUE RECOGNITION

 

Under Accounting Standards Codification (“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

2025

    

2026

    

2027 and

thereafter

  

Licensing and related revenues

   $ 10,793     $ 3,119     $ 93  

 

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, 2025

(unaudited)

    

Three months ended March 31, 2024

(unaudited)

  
   

Licensing and

related

revenues

    

Royalties

   

Total

    

Licensing and

related

revenues

    

Royalties

   

Total

  

Geography

                                                

United States

   $ 2,415     $ 1,204     $ 3,619     $ 383     $ 2,155     $ 2,538  

Europe and Middle East

     506       978       1,484       601       911       1,512  

Asia Pacific

     12,121       7,021       19,142       10,417       7,592       18,009  

Other

     —       —       —       13       —       13  

Total

   $ 15,042     $ 9,203     $ 24,245     $ 11,414     $ 10,658     $ 22,072  
                                                 

Use cases for the Company’s technology portfolio

                                                

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

   $ 13,513     $ 6,932     $ 20,445     $ 10,067     $ 7,939     $ 18,006  

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

     1,529       2,271       3,800       1,347       2,719       4,066  

Total

   $ 15,042     $ 9,203     $ 24,245     $ 11,414     $ 10,658     $ 22,072  
                                                 

Timing of revenue recognition

                                                

Products transferred at a point in time

   $ 11,390     $ 9,203     $ 20,593     $ 9,453     $ 10,658     $ 20,111  

Products and services transferred over time

     3,652       —       3,652       1,961       —       1,961  

Total

   $ 15,042     $ 9,203     $ 24,245     $ 11,414     $ 10,658     $ 22,072  

 

Contract balances:

 

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

 

   

March 31,

2025

    

December 31,

2024

 
                 

Currents assets (classified under “Trade receivables”):

                

Trade receivables

   $ 15,088     $ 15,969  

Unbilled receivables (associated with licensing and related revenue)

     17,274       8,266  

Unbilled receivables (associated with royalties)

     8,457       12,974  

Total current assets

     40,819       37,209  
                 

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

                

Unbilled receivables (associated with licensing and related revenue)

     2,668       2,583  
                 

Deferred revenues (short-term contract liabilities)

     2,954       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 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, 2025, the Company recognized $1,114 that was included in deferred revenues (short-term contract liability) balance at January 1, 2025.