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REVENUE FROM CONTRACTS WITH CUSTOMERS
 6 Months Ended
Jun. 30, 2026
Revenue from Contract with Customer [Abstract]  
REVENUE FROM CONTRACTS WITH CUSTOMERS
4. REVENUE FROM CONTRACTS WITH CUSTOMERS
Disaggregation of revenue
Nature of Products and Services
The following table depicts the disaggregation of revenue by type of products or services and timing of transfer of products or services (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Type of products or services
System sales$255 $1,025 $341 $13,672 
QCaaS1,860 1,241 3,619 2,774 
Professional services929 785 1,912 1,562 
Other revenue*32 44 62 88 
Total revenue$3,076 $3,095 $5,934 $18,096 
Timing of revenue recognition
Revenue recognized over time$2,797 $3,082 $5,614 $5,419 
Revenue recognized at a point in time279 13 320 12,677 
Total revenue$3,076 $3,095 $5,934 $18,096 
*Other revenue includes support and maintenance and printed circuit board sales.
Geographic Information
The following table presents a summary of revenue by geography for the three and six months ended June 30, 2026 and 2025, based on customer location (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
United States$2,175 $710 $3,865 $1,207 
Japan137 156 519 638 
Germany127 1,186 302 13,990 
Canada130 268 271 572 
Other507 775 977 1,690 
Total revenue$3,076 $3,095 $5,934 $18,096 
“Other” includes the rest of Europe, the Middle East, the rest of Asia and Australia where the revenue from a single country is not greater than 10% of total consolidated revenue. In accordance with Company policy, the Company has not had any sales in China, Russia or Ukraine.
Significant customers
A significant customer is defined as one that comprises up to ten percent or more of total revenues in a particular period or ten percent of outstanding accounts receivable balance as of the period end.
The tables below present the significant customers on a percentage of total revenue basis for the three and six months ended June 30, 2026 and 2025.
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Customer A41 %— %35 %— %
Customer B— %35 %— %76 %
Customer C— %11 %— %— %
As of each of June 30, 2026 and 2025, there were two and five significant customers, respectively, that comprised ten percent or more of outstanding accounts receivable balances.
Contract balances
The following table provides information about accounts receivable, contract assets and liabilities as of June 30, 2026 and December 31, 2025 (in thousands):
As of June 30, 2026As of December 31, 2025
Trade accounts receivable and contract assets, net:
Trade accounts receivable, net of allowance for credit losses and excluding unbilled receivables$1,553 $1,021 
Unbilled receivable contract asset466 566 
Contract acquisition costs3,325 940 
Capitalized fulfillment costs717 — 
Total contract assets$6,061 $2,527 
Contract liabilities:
Deferred revenue, current$9,234 $2,778 
Deferred revenue, non-current1,322 560 
Total contract liabilities$10,556 $3,338 
The allowance for credit losses related to trade accounts receivable was nominal as of June 30, 2026 and December 31, 2025. During the three and six months ended June 30, 2026, the Company recorded no write-offs of accounts receivable deemed uncollectible, respectively. During each of the three and six months ended June 30, 2025, the Company recorded $0.1 million write-offs of accounts receivable deemed uncollectible.
The revenue recognized in the condensed consolidated statements of operations and comprehensive loss that was included in the contract liability balance at the beginning of each period was $2.0 million and $14.6 million for the six months ended June 30, 2026 and 2025, respectively.
Changes in deferred revenue from contracts with customers were as follows (in thousands):
Six Months Ended June 30,
20262025
Balance at beginning of period$3,338 $19,356 
Deferral of revenue13,103 4,313 
Recognition of deferred revenue(5,885)(18,109)
Balance at end of period$10,556 $5,560 
Remaining performance obligations
A significant number of the Company’s product and service sales are short-term in nature with a contract term of one year or less. For those contracts, the Company has utilized the practical expedient in ASC 606-10-50-14, exempting the Company from disclosure of the transaction price allocated to remaining performance obligations if the performance obligation is part of a contract that has an original expected duration of one year or less.
As of June 30, 2026, the aggregate amount of remaining performance obligations that were unsatisfied or partially unsatisfied related to customer contracts was $40.7 million, of which approximately 57% is expected to be recognized to revenue in the next 12 months and 72% is expected to be recognized to revenue in the next two years with the remainder to be recognized thereafter. Revenues allocated to remaining performance obligations represents the transaction price of noncancellable orders for which service has not been performed, which include deferred revenue and the amounts that will be invoiced and recognized as revenues in future periods from open contracts and excludes unexercised renewals.