|12 Months Ended|
Dec. 31, 2022
|Revenue Recognition [Abstract]|
|Revenue Recognition||Revenue Recognition
Revenue by Service Line
•Contract assets – Substantially all the Company’s contracts with customers are based on customer-issued purchase orders for distinct products or services. Customers are generally billed upon shipment of such products or services, and the related contract assets comprise the accounts receivable balances included in the accompanying consolidated balance sheets. At December 31, 2022, the Company also had $0.3 million in deferred contract costs related to up-front costs for direct materials incurred to fulfill a customer contract. These costs are classified as other current assets, and are expected to be recognized as expense in 2023.
•Contract liabilities – The Company generally bills and collects capital equipment and software-related service fees at the inception of the service agreements, which have terms ranging from to three years. The Company may also enter into agreements with customers that bundle the capital equipment and software-related service fees with software and hardware upgrades that are made commercially available over the term of the contract. The unearned portion of such fees are classified as deferred revenue. At December 31, 2022, the Company also had a $0.5 million refund liability classified as other accrued liabilities on the Consolidated Balance Sheet resulting from an up-front customer payment which is potentially refundable if the parties do not enter into the ensuing agreement. The Company expects the uncertainties underlying this amount to be resolved in 2023.
During the years ended December 31, 2022 and 2021, the Company recognized capital equipment and software-related service revenue of approximately $0.5 million and $0.3 million, respectively, which was previously included in deferred revenue in the accompanying consolidated balance sheets at December 31, 2021 and 2020, respectively.
Transaction price allocated to remaining performance obligations represents contracted revenue that has not yet been recognized, which includes deferred revenue that will be recognized as revenue in future periods. The majority of the remaining performance obligations relate to capital equipment and software-related service agreements and the upfront payments discussed under the heading “Contract Balances” above, which amounted to approximately $1.0 million at December 31, 2022. The Company expects to recognize approximately 62% of this revenue over the next twelve months and the remainder thereafter.
The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.
Reference 1: http://www.xbrl.org/2003/role/disclosureRef
No definition available.