REVENUE AND DEFERRED REVENUE |
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| REVENUE AND DEFERRED REVENUE | 13. REVENUE AND DEFERRED REVENUE Contract terms typically require payment upon shipment or installation of the System and additional payments as access codes for treatment sessions are delivered, which can span several years after the System is first delivered and installed. The timing of revenue recognition compared to billings and cash collections typically results in accounts receivable. However, sometimes customer advances and deposits may be required for certain customers and are recorded as contract liabilities (deferred revenue). For multi-year agreements, the Company generally invoices customers annually at the beginning of each annual coverage period and recognizes revenue over the term of the coverage period. As of September 30, 2026, the Company expects to recognize approximately the following percentages of deferred revenue by year:
Revenue recognized during both the three months ended September 30, 2026 and 2025 that was included in the contract liability balance at the beginning of the year was $0 and $0.1 million, respectively. Revenue recognized for the nine months ended September 30, 2026 and 2025 that was included in the contract liability balance at the beginning of the year was $0.7 million and $0.9 million, respectively, and, in each case, primarily represented revenue earned from separately priced extended warranties, customer deposits, milestone revenue, and clinical training. Geographical information Revenues generated from customers outside of the United States were $0.8 million and $1.0 million for the three months ended September 30, 2026 and 2025, respectively, and $2.0 million for both of the nine months ended September 30, 2026 and 2025. |