Net product sales |
6 Months Ended |
|---|---|
Jun. 30, 2025 | |
| Net product sales | |
| Net product sales | 16. Net product sales Revenue Disaggregation Management has concluded that the disaggregation level is the same under both the revenue standard and the segment reporting standard. Please refer to Note 23. Pre-Production Costs Related to Long-Term Supply Arrangements In a typical arrangement with the customer, purchase orders are issued for pre-production activities which consist of engineering, design and development, tooling and prototypes for the manufacture and delivery of component parts. The Company has assessed and concluded that these activities are not in the scope of ASC 606, “Revenue from Contracts with Customers”. Therefore, any related payments or reimbursements would not be presented as revenue from contracts with customers. In accordance with ASC 340-10-25, Deferred costs and other assets, engineering, research and development, and other design and development costs related to products that will be sold under long-term supply arrangements requires such costs to be expensed as incurred or capitalized if reimbursement from the customer is contractually guaranteed. Costs for molds, dies and other tools used to make new products that will be sold under long-term supply arrangements without legal title or noncancelable use right are expensed as incurred or capitalized if reimbursement from the customer is contractually guaranteed. Customer Deposits Customer deposits represent non-refundable cash deposits from customers to secure rights to an amount of products produced by the Company under supply agreements. When the products are shipped to customers, the Company will recognize revenue and bill the customers to reduce the amount of the customer deposit liability. The customer deposits also include prepayments from customers to cover the Company’s pre-production costs under long-term supply arrangements. As of June 30, 2025 and December 31, 2024, the Company has customer deposits of $5.6 million and $4.4 million, respectively. During the six months ended June 30, 2025, $7.7 million was received, $4.6 million was recognized as net product sales revenue (including $1.5 million from the beginning balance of customer deposits) and $1.9 million was offset against reimbursable pre-production costs recognized in other assets. During the six months ended June 30, 2024, $4.3 million was received and $2.1 million was recognized as net product sales revenue (including $1.9 million from the beginning balance of customer deposits). |