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REVENUES AND ENTITY WIDE DISCLOSURES
 12 Months Ended
Dec. 31, 2025
Revenue from Contract with Customer [Abstract]  
REVENUES AND ENTITY WIDE DISCLOSURES

NOTE 9 – REVENUES AND ENTITY WIDE DISCLOSURES:

 

  a. Disaggregation of revenue

 

  (1)

During the second quarter of 2022, the Company completed the development of a customer-specific project for a Fortune 500 medical company customer (the “Client”) and moved from the project development phase to its production phase. Through March 30, 2025, the Company recognized development services revenues and costs that had been previously deferred based on the expected manufacturing term of the product, which the Company estimated originally at seven years. During the first quarter of 2025, due to the fact that the Company has not received a purchase order from the Client and does not expect to receive such order, the Company decided to fully derecognize the fulfilment asset and contract liability associated with the Client, in the amount of $957 thousand and $1,690 thousand, respectively.

 

The balance of $847 thousand related to the Client, presented under the “accounts receivable” of the balance sheet as of December 31, 2024, was paid in full during 2025.

     
  (2) During the year ended December 31, 2025 the Company recognized revenues from customization and development services in which the performance obligation is satisfied over time in the amount of $1,150 thousand.

 

  b. Revenues by geographical area (based on the location of customers)

 

The following is a summary of revenues within geographic areas:

 

    2025     2024  
    Year ended on
December 31,		  
    2025     2024  
    USD in thousands  
United States     1,856       3,014  
Israel     1,150       911  
Other    

9

       39  
Revenue     3,015       3,964  

 

  c. Major customers

 

Set forth below is a breakdown of Company’s revenue by major customers (major customer –revenues from these customers constituted at least 10% of total revenues in a certain year):

 

    Year ended on  
    December 31,  
    2025     2024  
    USD in thousands  
Customer A     1,856       3,000  
                 
Customer B     927       531  

 

 

ODYSIGHT.AI INC.

 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

 

NOTE 9 – REVENUES AND ENTITY WIDE DISCLOSURES (continued):

 

  d. Contract fulfillment assets and Contract liabilities:

 

    2025     2024  
    December 31,  
    2025     2024  
    USD in thousands  
Contract fulfillment assets     -       1,017  
Contract liabilities     165       2,075  

 

Contract liabilities include deferred service and advance payments.

 

The change in contract fulfillment assets:

 

    2025     2024  
    December 31,  
    2025     2024  
    USD in thousands  
             
Balance at beginning of year     1,017       1,256  
Contract costs recognized during the period     (1,017 )     (239 )
Balance at end of year     -       1,017  

 

The change in contract liabilities:

 

    2025     2024  
    December 31,  
    2025     2024  
    USD in thousands  
             
Balance at beginning of year     2,075       2,322  
Deferred revenue during the year     178       253  
Revenue recognized during the year     (2,088 )     (500 )
Balance at end of year     165       2,075  

 

Remaining Performance Obligations

 

Remaining Performance Obligations (“RPO”) represents contracted revenue that has not yet been recognized, which includes deferred revenue and amounts that are expected to be invoiced and recognized as revenue in future periods. As of December 31, 2025, the total RPO amounted to approximately $13.8 million. The total RPO amount includes an amount exceeding $10 million related to a long-term purchase order agreement signed in the third quarter of 2024 with a leading international defense contractor.

 

 

ODYSIGHT.AI INC.

 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS