Annual report [Section 13 and 15(d), not S-K Item 405]

Revenue Recognition

v3.26.1
Revenue Recognition
 12 Months Ended
Dec. 31, 2025
Revenue from Contract with Customer [Abstract]  
Revenue Recognition

4. Revenue Recognition

Revenue by Service Line

 

 

Year Ended December 31,

 

(in thousands)

 

2025

 

 

2024

 

Biologics and drug delivery

 

 

 

 

 

 

Disposable products

 

$

7,338

 

 

$

5,606

 

Services and license fees

 

 

11,702

 

 

 

11,704

 

Subtotal – Biologics and drug delivery revenue

 

 

19,040

 

 

 

17,310

 

Neurosurgery navigation and therapy

 

 

 

 

 

 

Disposable products

 

 

14,831

 

 

 

10,285

 

Subtotal – Neurosurgery navigation and therapy revenue

 

 

14,831

 

 

 

10,285

 

Capital equipment and software

 

 

 

 

 

 

Systems and software products

 

 

1,690

 

 

 

2,735

 

Services

 

 

1,410

 

 

 

1,060

 

Subtotal – Capital equipment and software revenue

 

 

3,100

 

 

 

3,795

 

Total revenue

 

$

36,971

 

 

$

31,390

 

 

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 consolidated balance sheets. Additionally, at December 31, 2025, the Company recorded as a contract asset up-front costs for direct materials incurred to fulfill a customer contract.

 

(in thousands)

 

December 31, 2025

 

 

December 31, 2024

 

 

December 31, 2023

 

Accounts receivable, net

 

$

6,549

 

 

$

4,713

 

 

$

3,211

 

Other contract assets

 

 

 

 

 

 

 

 

 

Unbilled receivables

 

$

714

 

 

$

642

 

 

$

733

 

Deferred contract costs

 

$

150

 

 

$

—

 

 

$

—

 

 

•
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.

 

(in thousands)

 

December 31, 2025

 

 

December 31, 2024

 

 

December 31, 2023

 

Contract liabilities

 

$

2,250

 

 

$

2,557

 

 

$

3,154

 

 

During the years ended December 31, 2025 and 2024, the Company recognized capital equipment and software-related service revenue of approximately $2.1 million and $2.3 million, respectively, which was previously included in contract liabilities in the accompanying consolidated balance sheets at December 31, 2024 and 2023, 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 $2.1 million at December 31, 2025. The Company expects to recognize approximately 72% of this revenue over the next twelve months and the remainder thereafter.