XML 22 R12.htm IDEA: XBRL DOCUMENT v3.25.2
Note 5 - Revenue Recognition
 6 Months Ended
Jun. 30, 2025
Notes to Financial Statements  
Revenue from Contract with Customer [Text Block]

NOTE 5:

REVENUE RECOGNITION

 

Under Accounting Standards Codification (“ASC”) No. 606, “Revenue from Contracts with Customers” (“ASC 606”), the Company 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 license customization and implementation services by using cost inputs to measure progress toward completion of its performance obligations. The Company considers the post-contract support services as a distinct performance obligation that is satisfied over time, and as such, revenue is recognized ratably over the service period.

 

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. This estimation process for the royalty revenue accrual is based on inputs and estimations received from the Company’s customers, as well as sales trends and various market factors. Adjustments to royalty revenues are made in subsequent periods to reflect updated estimates as soon as the final royalty reports are sent to the Company. 

 

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

   $ 7,291     $ 3,828     $ 725  

 

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:

 

   

Six months ended June 30, 2025

(unaudited)

    

Three months ended June 30, 2025

(unaudited)

  
   

Licensing

and

related

revenues

    

Royalties

   

Total

    

Licensing

and

related

revenues

    

Royalties

   

Total

  

Geography

                                                

United States

   $ 6,690     $ 2,473     $ 9,163     $ 4,275     $ 1,269     $ 5,544  

Europe and Middle East

     1,716       1,778       3,494       1,210       800       2,010  

Asia Pacific

     21,658       15,608       37,266       9,537       8,587       18,124  

Total

   $ 30,064     $ 19,859     $ 49,923     $ 15,022     $ 10,656     $ 25,678  
                                                 

Use cases for the Company’s technology portfolio

                                                

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

   $ 21,512     $ 15,210     $ 36,722     $ 7,999     $ 8,278     $ 16,277  

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

     8,552       4,649       13,201       7,023       2,378       9,401  

Total

   $ 30,064     $ 19,859     $ 49,923     $ 15,022     $ 10,656     $ 25,678  
                                                 

Timing of revenue recognition

                                                

Products transferred at a point in time

   $ 22,146     $ 19,859     $ 42,005     $ 10,756     $ 10,656     $ 21,412  

Products and services transferred over time

     7,918       —       7,918       4,266       —       4,266  

Total

   $ 30,064     $ 19,859     $ 49,923     $ 15,022     $ 10,656     $ 25,678  

 

 

   

Six months ended June 30, 2024

(unaudited)

    

Three months ended June 30, 2024

(unaudited)

  
   

Licensing

and

related

revenues

    

Royalties

   

Total

    

Licensing

and

related

revenues

    

Royalties

   

Total

  

Geography

                                                

United States

   $ 811     $ 3,092     $ 3,903     $ 428     $ 937     $ 1,365  

Europe and Middle East

     6,845       2,109       8,954       6,244       1,198       7,442  

Asia Pacific

     21,023       16,616       37,639       10,606       9,024       19,630  

Other

     13       —       13       —       —       —  

Total

   $ 28,692     $ 21,817     $ 50,509     $ 17,278     $ 11,159     $ 28,437  
                                                 

Use cases for the Company’s technology portfolio

                                                

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

   $ 26,323     $ 16,732     $ 43,055     $ 16,256     $ 8,793     $ 25,049  

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

     2,369       5,085       7,454       1,022       2,366       3,388  

Total

   $ 28,692     $ 21,817     $ 50,509     $ 17,278     $ 11,159     $ 28,437  
                                                 

Timing of revenue recognition

                                                

Products transferred at a point in time

   $ 24,723     $ 21,817     $ 46,540     $ 15,270     $ 11,159     $ 26,429  

Products and services transferred over time

     3,969       —       3,969       2,008       —       2,008  

Total

   $ 28,692     $ 21,817     $ 50,509     $ 17,278     $ 11,159     $ 28,437  

 

Contract balances:

 

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

 

   

June 30,

2025

    

December 31,

2024

 
                 

Currents assets (classified under “Trade receivables”):

                

Trade receivables

   $ 11,832     $ 15,969  

Unbilled receivables (associated with licensing and related revenue)

     14,114       8,266  

Unbilled receivables (associated with royalties)

     10,737       12,974  

Total current assets

     36,683       37,209  
                 

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

                

Unbilled receivables (associated with licensing and related revenue)

     2,859       2,583  
                 

Deferred revenues (short-term contract liabilities)

     3,212       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 and six months ended June 30, 2025, the Company recognized $988 and $2,102, respectively, that was included in deferred revenues (short-term contract liability) balance at December 31, 2024.