Quarterly report pursuant to Section 13 or 15(d)

Revenue Recognition

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Revenue Recognition
 6 Months Ended
Jun. 30, 2024
Revenue from Contract with Customer [Abstract]  
Revenue Recognition
3.   Revenue Recognition
Revenue by Service Line
Three Months Ended June 30,
(in thousands) 2024 2023
Biologics and drug delivery
Disposable products $ 1,671  $ 346 
Services and license fees 2,656  3,022 
Subtotal – Biologics and drug delivery revenue 4,327  3,368 
Neurosurgery navigation and therapy
Disposable products 2,586  1,818 
Services —  383 
Subtotal – Neurosurgery navigation and therapy
 2,586  2,201 
Capital equipment and software
Systems and software products 687  173 
Services 258  208 
Subtotal – Capital equipment and software revenue 945  381 
Total revenue $ 7,858  $ 5,950 
Six Months Ended June 30,
(in thousands)
2024
2023
Biologics and drug delivery
Disposable products $ 2,224  $ 940 
Services and license fees 6,410  5,104 
Subtotal – Biologics and drug delivery revenue 8,634  6,044 
Neurosurgery navigation and therapy
Disposable products 4,513  3,676 
Services —  886 
Subtotal – Neurosurgery navigation and therapy
 4,513  4,562 
Capital equipment and software
Systems and software products 1,842  351 
Services 508  426 
Subtotal – Capital equipment and software revenue 2,350  777 
Total revenue $ 15,497  $ 11,383 
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.
June 30, 2024
December 31, 2023
(in thousands)
Accounts receivable, net $ 3,475  $ 3,211 
Other contract assets
Unbilled receivables $ 1,051  $ 733 
•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.
June 30, 2024
December 31, 2023
(in thousands)
Deferred revenues $ 1,525  $ 3,154 
During the three and six months ended June 30, 2024, the Company recognized approximately $0.5 million and $2.0 million of revenue, respectively, 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 $1.5 million at June 30, 2024. The Company expects to recognize 71% of this revenue over the next twelve months and the remainder thereafter.