Revenue |
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| Revenue from Contract with Customer [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Revenue |
The Company generates revenue from (i) product sales, including avionics, Global Navigation Satellite System (“GNSS”) technologies, and mUAS/commercial drones; (ii) services, including training, support, and drone services; (iii) research and development (“R&D”) contracts; and (iv) sales-based royalties.
Product revenue is recognized at a point in time upon shipment or delivery when control transfers to the customer. Service revenue, including support, training, and drone services, is recognized over time as services are performed, generally on a straight-line basis over the service period. Extended warranties are service-type warranties and are recognized over the contractual term, typically two to three years. Revenue from R&D contracts is recognized over time using an input method based on costs incurred relative to total estimated costs. Sales-based royalties are recognized at a point in time as underlying sales occur.
The following table summarizes revenue recognized at a point in time and over time for the periods indicated:
Contract liabilities as of June 30, 2026 and December 31, 2025 were $7.2 million and $4.5 million, respectively. The majority of contract liabilities are expected to be recognized as revenue during 2026. The Company had no significant contract assets as of June 30, 2026 and December 31, 2025. During the three and six months ended June 30, 2026, the Company recognized $0.9 million and $1.9 million in revenue previously included in contract liabilities as of December 31, 2025.
Revenue is also disaggregated by segment and geography. See Note 10. Segment Information.
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