Quarterly report pursuant to Section 13 or 15(d)

Revenue Recognition

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Revenue Recognition
 3 Months Ended
Mar. 31, 2024
Revenue from Contract with Customer [Abstract]  
Revenue Recognition
3.   Revenue Recognition
Revenue by Service Line
Three Months Ended March 31,
(in thousands) 2024 2023
Biologics and drug delivery
Disposable products $ 553  $ 594 
Services and license fees 3,754  2,082 
Subtotal – Biologics and drug delivery revenue 4,307  2,676 
Functional neurosurgery navigation and therapy
Disposable products 1,927  1,858 
Services —  503 
Subtotal – Functional neurosurgery navigation and therapy
 1,927  2,361 
Capital equipment and software
Systems and software products 1,155  178 
Services 250  218 
Subtotal – Capital equipment and software revenue 1,405  396 
Total revenue $ 7,639  $ 5,433 
Contract Balances
•Contract assets – The timing of revenue recognition may differ from the time of billing to the Company's customers. In most cases, customers are billed upon shipment of such products or delivery of such services and the related contract assets, which represent an unconditional right to consideration, and comprise the accounts receivable balance. When revenue is recognized in advance of its right to bill and receive consideration, the Company records this unbilled receivable as a contract asset, which is classified as other current assets in the accompanying condensed consolidated balance sheets. Additionally, at March 31, 2024, the Company also had
$0.2 million in deferred contract costs, classified as other current assets, related to up-front costs for direct materials incurred to fulfill a customer contract.
March 31, 2024 December 31, 2023
(in thousands)
Accounts receivable, net $ 2,511  $ 3,211 
Other contract assets
Unbilled receivables $ 612  $ 733 
Deferred contract costs $ 193  $ — 
•Contract liabilities – Contract liabilities consist of amounts that have been invoiced and for which the Company has the right to bill, but that have not been recognized as revenue as the related goods or services have not been transferred. The Company's contract liabilities are generally comprised of the following: (1) capital equipment and software-related service fees that are typically billed and collected at the inception of the service agreements, which have terms ranging from one to three years; (2) annual fees for 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; and (3) up-front payments from customers made in connection with consulting services. The unearned portion of all such fees is classified as deferred revenue.
March 31, 2024 December 31, 2023
(in thousands)
Deferred revenues $ 1,690  $ 3,154 
During the three months ended March 31, 2024, the Company recognized approximately $1.5 million of revenue, which was previously included in deferred revenue in the accompanying condensed consolidated balance sheet at December 31, 2023.
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 $1.6 million at March 31, 2024. The Company expects to recognize 71% of this revenue over the next twelve months and the remainder thereafter.