NOTE
6 – REVENUES:
| |
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 did not expect to receive such order, the Company decided to fully
derecognize the fulfillment asset and contract liability associated with the Client, in the amount of $957 thousand and $1,690 thousand,
respectively. |
| |
|
|
| |
(2) |
During
the six months ended June 30, 2026, the Company recognized revenues from customization and development services in which the performance
obligation is satisfied over time in the amount of $497 thousand. |
| |
b. |
Unbilled
receivables, Contract fulfillment assets and Contract liabilities: |
Unbilled
receivables represent revenue recognized for goods or services delivered to a customer, but not yet invoiced.
The
change in unbilled receivables:
SCHEDULE
OF CHANGE IN UNBILLED RECEIVABLES
| | |
June 30, | | |
December 31, | |
| | |
2026 | | |
2025 | |
| | |
USD in thousands | |
| Balance at beginning of period | |
| 615 | | |
| 185 | |
| Contract revenues recognized during the period | |
| 67 | | |
| 430 | |
| Balance at end of period | |
| 682 | | |
| 615 | |
The
change in contract fulfillment assets:
SCHEDULE
OF CONTRACT FULFILLMENT ASSETS AND CONTRACT LIABILITIES
| | |
June 30, | | |
December 31, | |
| | |
2026 | | |
2025 | |
| | |
USD in thousands | |
| Balance at beginning of period | |
| - | | |
| 1,017 | |
| Contract costs recognized during the period | |
| - | | |
| (1,017 | ) |
| Balance at end of period | |
| - | | |
| - | |
Contract
liabilities include deferred service and advance payments.
The
change in contract liabilities:
| | |
June 30, | | |
December 31, | |
| | |
2026 | | |
2025 | |
| | |
USD in thousands | |
| Balance at beginning of period | |
| 165 | | |
| 2,075 | |
| Contract liabilities, Balance at beginning of the period | |
| 165 | | |
| 2,075 | |
| Deferred revenue during the period | |
| 203 | | |
| 178 | |
| Revenue recognized during the period | |
| (26 | ) | |
| (2,088 | ) |
| Balance at end of period | |
| 342 | | |
| 165 | |
| Contract liabilities, Balance at end of the period | |
| 342 | | |
| 165 | |
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 June 30, 2026, the total RPO
amounted to approximately $14.1
million.
ODYSIGHT.AI
INC.
NOTES
TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
|