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REVENUE
3 Months Ended
Mar. 31, 2026
Revenue from Contract with Customer [Abstract]  
REVENUE

 

5. REVENUE

 

The Company recognizes revenue in accordance with ASC 606. The amount of revenue that the Company recognizes reflects the consideration it expects to receive in exchange for goods or services and such revenue is recognized at the time when goods or services are transferred and/or delivered to its customers. Revenue is recognized when the Company satisfies a performance obligation by transferring the product or service to the customer, either at a point in time or over time. Revenue from MSTcad licenses is recognized over a period of time.

 

The following table provides information about disaggregated revenue by primary geographical markets and timing of revenue recognition (in thousands):

        
   Three Months Ended March 31 
   2026   2025 
Primary geographic markets          
North America  $11   $4 
Asia Pacific        
Total  $11   $4 
           
Timing of revenue recognition          
Products and services transferred at a point in time  $11   $ 
Products and services transferred over time       4 
Total  $11   $4 

 

Unbilled contracts receivable

 

Timing of revenue recognition may differ from the timing of invoicing customers. Accounts receivable includes amounts billed and currently due from customers. Unbilled contracts receivable represents unbilled amounts expected to be received from customers in future periods, where the revenue recognized to date exceeds the amount billed, and the right to receive payment is subject to the underlying contractual terms. Unbilled contracts receivable amounts may not exceed their net realizable value and are classified as long-term assets if the payments are expected to be received more than one year from the reporting date. The Company had no unbilled contracts receivable as of March 31, 2026.

 

Deferred Revenue

 

The Company records deferred revenue for customers that were issued invoices, but from which the Company has not yet recognized the revenue based on its revenue recognition policy. As of March 31, 2026, the Company has approximately $96,000 in deferred revenue that is expected to be recognized in the next 12 months.