Annual report pursuant to Section 13 and 15(d)

Summary of Significant Accounting Policies (Tables)

v3.23.1
Summary of Significant Accounting Policies (Tables)
 12 Months Ended
Dec. 31, 2022
Accounting Policies [Abstract]  
Schedule of Reconciliation of Cash, Cash Equivalents, and Restricted Cash

The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported in the consolidated balance sheets to the same total reported in the consolidated statements of cash flows (in thousands):

 

 

 

For the years ended December 31,

 

 

 

2022

 

 

2021

 

Cash and cash equivalents

 

$

4,181

 

 

$

29,972

 

Restricted cash

 

 

—

 

 

 

203

 

Total cash, cash equivalents, and restricted cash in the
   consolidated statement of cash flows

 

$

4,181

 

 

$

30,175

 

 
Estimated Useful Lives of Property, Plant and Equipment

The cost of property, plant, and equipment is depreciated using the straight-line method over the following estimated useful lives of the respective assets, except for leasehold improvements, which are depreciated over the lesser of the estimated useful lives of the respective assets or the related lease terms.

 

Building

 

30 years

Leasehold improvements

 

3 to 5 years

Equipment and computers

 

3 to 5 years

Furniture and fixtures

 

5 years

 
Summary of Opening and Closing Balances of Contract Liabilities

The Company performs its obligations under a contract with a customer by transferring products and/or services in exchange for consideration from the customer. The Company typically invoices its customers as soon as control of a good and/or service is transferred and a receivable for the Company is established. The Company, however, recognizes a contract liability when a customer prepays for goods and/or services and the Company has not transferred control of the goods and/or services. The opening and closing balances of the Company’s contract liabilities are as follows (in thousands):

 

 

 

December 31,

 

 

 

2022

 

 

2021

 

Undelivered elements (training, installation, product and
   support services)

 

$

447

 

 

$

835

 

Extended warranty contracts

 

 

2,082

 

 

 

1,753

 

Total deferred revenue

 

 

2,529

 

 

 

2,588

 

Less: long-term portion of deferred revenue

 

 

(418

)

 

 

(329

)

Deferred revenue – current

 

$

2,111

 

 

$

2,259

 

 
Summary of Disaggregation of Revenues Related to Geographic Areas

The Company’s revenues related to the following geographic areas were as follows (in thousands):

 

 

 

Years Ended December 31,

 

 

 

2022

 

 

2021

 

 

2020

 

United States

 

$

33,876

 

 

$

25,384

 

 

$

16,195

 

International

 

 

14,586

 

 

 

13,804

 

 

 

6,585

 

Net Revenue

 

$

48,462

 

 

$

39,188

 

 

$

22,780

 

 
Summary of Revenues Disaggregated by Timing of Goods and Services Transferred

Information regarding revenues disaggregated by the timing of when goods and services are transferred is as follows (in thousands):

 

 

 

Years Ended December 31,

 

 

 

2022

 

 

2021

 

 

2020

 

Revenue recognized over time

 

$

5,697

 

 

$

4,709

 

 

$

4,314

 

Revenue recognized at a point in time

 

 

42,765

 

 

 

34,479

 

 

 

18,466

 

Net Revenue

 

$

48,462

 

 

$

39,188

 

 

$

22,780

 

 
Summary of Sales by End Market

The Company’s sales by end market is as follows (in thousands):

 

 

 

Years Ended December 31,

 

 

 

2022

 

 

2021

 

 

2020

 

End-customer

 

$

33,876

 

 

$

25,384

 

 

$

16,195

 

Distributors

 

 

14,586

 

 

 

13,804

 

 

 

6,585

 

Net Revenue

 

$

48,462

 

 

$

39,188

 

 

$

22,780

 

 
Changes in Initial Product Warranty Accrual and Expenses Under Initial and Extended Warranties Changes in the initial product warranty accrual and the expenses incurred under the Company’s initial and extended warranties were as follows (in thousands):

 

 

 

Years Ended December 31,

 

 

 

2022

 

 

2021

 

 

2020

 

Balance, beginning of period

 

$

1,086

 

 

$

1,132

 

 

$

1,110

 

Provision for estimated warranty cost

 

 

3,639

 

 

 

1,747

 

 

 

1,047

 

Warranty expenditures

 

 

(3,072

)

 

 

(1,793

)

 

 

(1,025

)

Balance, end of period

 

 

1,653

 

 

 

1,086

 

 

 

1,132

 

Less: long-term portion of warranty accrual

 

 

360

 

 

 

521

 

 

 

384

 

Current portion of warranty accrual

 

$

1,293

 

 

$

565

 

 

$

748

 

 
Summary of Income Statement Classification of Compensation Expense The following table summarizes the income statement classification of compensation expense associated with share-based payments (in thousands):

 

 

 

Years Ended December 31,

 

 

 

2022

 

 

2021

 

 

2020

 

Cost of revenue

 

$

154

 

 

$

156

 

 

$

297

 

Sales and marketing

 

 

576

 

 

 

367

 

 

 

789

 

General and administrative

 

 

1,368

 

 

 

820

 

 

 

2,042

 

Engineering and development

 

 

205

 

 

 

319

 

 

 

242

 

 

 

$

2,303

 

 

$

1,662

 

 

$

3,370

 

 
Assumptions on Estimation of Stock Option Fair Values The stock option fair values were estimated using the Black-Scholes option-pricing model with the following weighted-average assumptions:

 

 

 

Years Ended December 31,

 

 

 

2022

 

2021

 

 

2020

 

Expected term (years)

 

N/A

 

 

6.1

 

 

 

5.5

 

Volatility

 

N/A

 

 

111

%

 

 

103

%

Annual dividend per share

 

N/A

 

$

—

 

 

$

—

 

Risk-free interest rate

 

N/A

 

 

1.0

%

 

 

0.4

%