Quarterly report [Sections 13 or 15(d)]

Revenue Recognition

v3.26.1
Revenue Recognition
 6 Months Ended
Jun. 30, 2026
Revenue from Contract with Customer [Abstract]  
Revenue Recognition
4.
Revenue Recognition

Revenue by Service Line

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

(in thousands)

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Biologics and drug delivery

 

 

 

 

 

 

 

 

 

 

 

 

Disposable products

 

$

943

 

 

$

1,871

 

 

$

2,838

 

 

$

3,651

 

Services and license fees

 

 

3,088

 

 

 

2,868

 

 

 

6,001

 

 

 

5,779

 

Subtotal – Biologics and drug delivery revenue

 

 

4,031

 

 

 

4,739

 

 

 

8,839

 

 

 

9,430

 

Neurosurgery navigation and therapy

 

 

 

 

 

 

 

 

 

 

 

 

Disposable products

 

 

5,552

 

 

 

3,432

 

 

 

11,439

 

 

 

6,709

 

Subtotal – Neurosurgery navigation and therapy revenue

 

 

5,552

 

 

 

3,432

 

 

 

11,439

 

 

 

6,709

 

Capital equipment and software

 

 

 

 

 

 

 

 

 

 

 

 

Systems and software products

 

 

881

 

 

 

694

 

 

 

1,901

 

 

 

928

 

Services

 

 

416

 

 

 

350

 

 

 

829

 

 

 

633

 

Subtotal – Capital equipment and software revenue

 

 

1,297

 

 

 

1,044

 

 

 

2,730

 

 

 

1,561

 

Total revenue

 

$

10,880

 

 

$

9,215

 

 

$

23,008

 

 

$

17,700

 

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 products or delivery of services and the related contract assets, which represent an unconditional right to consideration, 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.

(in thousands)

 

June 30, 2026

 

 

December 31, 2025

 

Accounts receivable, net

 

$

8,395

 

 

$

6,549

 

Other contract assets

 

 

 

 

 

 

Unbilled receivables

 

$

960

 

 

$

714

 

Deferred contract costs

 

$

199

 

 

$

150

 
•
Contract liabilities – Contract liabilities consist of amounts that have been invoiced to customers 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 contract liabilities.

(in thousands)

 

June 30, 2026

 

 

December 31, 2025

 

Contract liabilities

 

$

2,353

 

 

$

2,250

 

During the three and six months ended June 30, 2026, the Company recognized approximately $0.4 million and $1.1 million, respectively, of revenue which was previously included in contract liabilities in the condensed consolidated balance sheet at December 31, 2025. During the three and six months ended June 30, 2025, the Company recognized approximately $0.2 million and $1.0 million, respectively, of revenue which was previously included in contract liabilities in the condensed consolidated balance sheet at December 31, 2024.

Transaction price allocated to remaining performance obligations represents contracted revenue that has not yet been recognized, which includes contract liabilities 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 $2.2 million at June 30, 2026. The Company expects to recognize approximately 77% of this revenue over the next twelve months and the remainder thereafter.