Quarterly report pursuant to Section 13 or 15(d)

Revenue Recognition

v3.22.2
Revenue Recognition
 6 Months Ended
Jun. 30, 2022
Revenue from Contract with Customer [Abstract]  
Revenue Recognition
3.   Revenue Recognition
Revenue by Service Line
Three Months Ended June 30,
(in thousands) 2022 2021
Functional neurosurgery navigation and therapy
Disposable products $ 1,798  $ 1,861 
Services 375  — 
Subtotal – Functional neurosurgery navigation and therapy
 2,173  1,861 
Biologics and drug delivery
Disposable products 1,225  450 
Services 1,183  940 
Subtotal – Biologics and drug delivery revenue 2,408  1,390 
Capital equipment and software
Systems and software products 434  52 
Services 185  110 
Subtotal – Capital equipment and software revenue 619  162 
Total revenue $ 5,200  $ 3,413 
Six Months Ended June 30,
(in thousands) 2022 2021
Functional neurosurgery navigation and therapy
Disposable products $ 3,661  $ 3,779 
Services 750  — 
Subtotal – Functional neurosurgery navigation and therapy
 4,411  3,779 
Biologics and drug delivery
Disposable products 2,075  1,364 
Services 2,487  1,685 
Subtotal – Biologics and drug delivery revenue 4,562  3,049 
Capital equipment and software
Systems and software products 884  382 
Services 374  233 
Subtotal – Capital equipment and software revenue 1,258  615 
Total revenue $ 10,231  $ 7,443 
Contract Balances
•Contract assets – Substantially all the Company’s contracts with customers are based on customer-issued purchase orders for distinct products or services. Customers are billed generally upon shipment of such products or delivery of such services, and the related contract assets comprise the accounts receivable balances included in the accompanying condensed consolidated balance sheets.
•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 one 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 all such fees is classified as deferred revenue.
During the three and six months ended June 30, 2022, the Company recognized capital equipment and software-related service revenue of approximately $0.1 million and $0.3 million, respectively, which was previously included in deferred revenue in the accompanying condensed consolidated balance sheet at December 31, 2021.
Revenue with respect to remaining performance obligations related to capital equipment and software-related service agreements and the upfront payments discussed under the heading "Contract Balances" above amounted to approximately $0.8 million at June 30, 2022. The Company expects to recognize approximately 53% of this revenue over the next twelve months and the remainder thereafter.