v3.26.1
Revenue
 3 Months Ended
Mar. 31, 2026
Revenue from Contract with Customer [Abstract]  
Revenue
3.
Revenue

Disaggregation of Revenue

The following table provides information about disaggregated revenue from contracts with customers by the nature of products and services provided (in thousands):

 

 

 

Three months ended March 31,

 

 

 

2026

 

 

2025

 

EEG recorders and Wearables sales, point in time

 

$

20,190

 

 

$

15,608

 

EEG portal and Clarity subscriptions and recorder loans, over time

 

 

6,304

 

 

 

4,883

 

Total Revenue

 

$

26,494

 

 

$

20,491

 

 

Currently, the Company’s customers are solely in the United States.

Contract Costs

The Company capitalizes sales commissions that are considered to be incremental to the acquisition of customer contracts and amortizes them over an estimated period of benefit. To determine the period of benefit of its deferred commissions, the Company evaluates the type of commissions, the nature of the related benefit, and the specific facts and circumstances of its arrangements. The Company determines the period of benefit for commissions paid for the acquisition of the initial subscription contract by taking into consideration its average customer life, which is generally assumed to be three years. The Company evaluates these assumptions at least annually and periodically reviews whether events or changes in circumstances have occurred that could impact the period of benefit.

The Company has elected to utilize the practical expedient to expense sales commissions with an amortization period of less than one year and capitalize sales commissions that are considered to be incremental costs of obtaining contracts with an amortization period greater than one year.

The following table provides the breakdown of capitalized contract costs (in thousands):

 

 

 

March 31,

 

 

 

2026

 

Contract cost balance beginning of the period

 

$

4,057

 

Contract costs capitalized during the period

 

 

590

 

Contract costs amortized during the period

 

 

(674

)

Contract Costs as of period end

 

$

3,973

 

 

Contract Liabilities and Performance Obligations

Contract liabilities consist of up-front payments received from customers primarily for the Clarity subscriptions.

The following table provides the breakdown of contract liabilities (in thousands):

 

 

 

March 31,

 

 

 

2026

 

Contract Liabilities balance beginning of the period

 

$

101

 

Additional Contract Liabilities during the period

 

 

53

 

Contract Liabilities balance recognized during the period

 

 

(66

)

Balance as of period end

 

$

88

 

 

The Company has elected not to include unfulfilled performance obligations for contracts in which the amount of revenue it recognizes is equal to the amount which the Company has a right to invoice. No revenue was recognized in the reporting period from performance obligations satisfied in previous periods. The short-term remaining performance obligations are expected to be recognized within 12 months.