Quarterly report pursuant to Section 13 or 15(d)

Revenue Recognition

v3.22.2.2
Revenue Recognition
 9 Months Ended
Sep. 30, 2022
Revenue from Contract with Customer [Abstract]  
Revenue Recognition
3.   Revenue Recognition
Revenue by Service Line
Three Months Ended September 30,
(in thousands) 2022 2021
Functional neurosurgery navigation and therapy
Disposable products $ 2,045  $ 2,004 
Services 375  150 
Subtotal – Functional neurosurgery navigation and therapy
 2,420  2,154 
Biologics and drug delivery
Disposable products 798  1,137 
Services 1,448  920 
Subtotal – Biologics and drug delivery revenue 2,246  2,057 
Capital equipment and software
Systems and software products 287  197 
Services 193  166 
Subtotal – Capital equipment and software revenue 480  363 
Total revenue $ 5,146  $ 4,574 
Nine Months Ended September 30,
(in thousands) 2022 2021
Functional neurosurgery navigation and therapy
Disposable products $ 5,706  $ 5,782 
Services 1,125  150 
Subtotal – Functional neurosurgery navigation and therapy
 6,831  5,932 
Biologics and drug delivery
Disposable products 2,873  2,501 
Services 3,935  2,605 
Subtotal – Biologics and drug delivery revenue 6,808  5,106 
Capital equipment and software
Systems and software products 1,171  580 
Services 567  399 
Subtotal – Capital equipment and software revenue 1,738  979 
Total revenue $ 15,377  $ 12,017 
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 nine months ended September 30, 2022, the Company recognized capital equipment and software-related service revenue of approximately $0.1 million and $0.4 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 September 30, 2022. The Company expects to recognize approximately 59% of this revenue over the next twelve months and the remainder thereafter.