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Revenue and Contracts with Customers
 12 Months Ended
Dec. 31, 2024
Revenue and Contracts with Customers [Abstract]  
Revenue and Contracts with Customers

3. Revenue and Contracts with Customers

 

Contract Balances

 

Timing differences between revenue recognized, billings, and customer payments result in contract assets and liabilities. Contract assets represent revenue recognized in excess of customer billings. Contract liabilities represent payments received from customers in advance of satisfying performance obligations. The Company had contract assets of $3,007 and contract liabilities of $3,333 as of December 31, 2024. The Company had no contract assets and no liabilities as of December 31, 2023.

 

Deferred Contract Costs

 

The Company defers costs associated with fulfilling its contracts if those costs meet all of the following criteria: (i) the costs relate directly to a contract, (ii) the costs generate or enhance resources of the Company that will be used in satisfying performance obligations in the future, and (iii) the costs are expected to be recovered. Costs are recognized over the life of the contract or when the respective milestone has been completed as cost of revenue. The Company had deferred contract costs totaling $120,793 and $0 as of December 31, 2024 and December 31, 2023, respectively. Deferred contract costs are included in prepaid and other current assets in the consolidated balance sheets.