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Statements of Operations and Comprehensive Loss Components

6 Months Ended

Jun. 30, 2025

Statements of Operations and Comprehensive Loss Components

Statements of Operations and Comprehensive Loss Components

3. Statements of Operations and Comprehensive Loss Components

Revenue

The Company sells products to its distributors, original design manufacturers (ODMs), and original equipment manufacturers (OEMs). The Company also recognizes revenue under licensing, patent, and royalty agreements with some customers.

The following table presents the Company’s revenues disaggregated by sales channel (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024
Distributor	$	8,731	$	9,227	$	16,649	$	19,514
Non-distributor		4,470		1,409		9,690		5,552
Total revenue	$	13,201	$	10,636	$	26,339	$	25,066

The following table presents the Company’s revenues disaggregated by timing of recognition (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024
Point in time	$	11,416	$	10,062	$	22,574	$	21,029
Over time		1,785		574		3,765		4,037
Total revenue	$	13,201	$	10,636	$	26,339	$	25,066

The following table presents the Company’s revenues disaggregated by type (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024
Product sales	$	11,091	$	9,887	$	22,117	$	20,747
Licensing		643		306		1,154		3,527
Royalties		325		175		457		282
Other revenue		1,142		268		2,611		510
Total revenue	$	13,201	$	10,636	$	26,339	$	25,066

The Company recognizes revenue in three primary geographic regions: Asia-Pacific (APAC); North America; and Europe, Middle East and Africa (EMEA). The Company recognizes revenue by geography based on the region in which the Company’s products are sold, and not to where the end products in which they are assembled are shipped. The Company’s revenue by region for the periods indicated was as follows (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024
APAC	$	8,582	$	6,310	$	15,841	$	13,240
North America		2,926		3,051		5,409		5,843
EMEA		1,693		1,275		5,089		5,983
Total revenue	$	13,201	$	10,636	$	26,339	$	25,066

Other Income (Expense), Net

On August 14, 2024, the Company received a strategic award to develop a long-term plan to provide manufacturing services for aerospace and defense segments (the Award). Under the Award, the Company will provide a plan to mitigate risks to its MRAM manufacturing supply chain. Pursuant to the Award, the Company may receive cash payments upon the achievement of certain technical tasks and deliverables. The Award allows for milestones totaling up to approximately $14.6 million for the Company over a span of 2.5 years.

The Award is not in the ordinary course of the Company’s business and hence not a contract with a customer. The Company has applied the revenue recognition principles under Accounting Standards Codification 606 by analogy.

During the three and six months ended June 30, 2025, the Company billed $1.0 million and $2.0 million, respectively, relating to the Award and recorded $0.9 million and $1.3 million, respectively, of other income. The Company has recorded this other income using an input method based on costs incurred to date relative to the total expected costs of the Award over its term. The remaining $0.7 million of the billed amount for the Award is recorded as contract obligations liability on the condensed balance sheets. This amount represents the Company’s obligation to perform future services for which the Company has received or is entitled to receive payment but which are not yet fulfilled.