Deferred Revenue

12 Months Ended

Dec. 31, 2023

Deferred Revenue Disclosure [Abstract]

Deferred Revenue

18. Deferred Revenue

The company records deferred revenue when cash payments are received or due in advance of its performance obligations offset by the revenue recognized in the period. Revenues of $0.2 million and $0.1 million were recognized during the years ended December 31, 2023 and December 31, 2022, respectively, which amounts were included in the deferred revenue balances of $1.2 million and $1.4 million as of December 31, 2022 and December 31, 2021, respectively.

Deferred revenue as of December 31, 2023 and 2022 consisted of the following:

	As of December 31,
	2023			2022
Holography-exclusive rights(1)	$	491,344		$	575,770
Holography-advance against PO(2)		470,588			459,539
Nanoweb -advance payment		110,700			175,000
Deferred revenue (JDA with the global battery maker)(3)		375,000			—
Authentication - deferred revenue		25,960			—
		1,473,592			1,210,309
Less: current portion		(1,054,557	)		(730,501	)
	$	419,035		$	479,808

(1)	On September 18, 2018, we signed an exclusive distribution agreement with Satair A/S for a term of 10 years. According to this agreement, the Company grants Satair A/S the exclusive right to sell, market, and distribute eyewear and visor products incorporating metamaterial-based laser protection technology that are developed or manufactured by the Company for use in aviation, military, and defense. On September 13, 2018, we received a fee of $1.0 million for the exclusive distribution rights granted under this agreement and the payment was recognized as deferred revenue on the consolidated balance sheets. It will be accounted as development revenue over a period of 8 years and no repayment of the $1.0 million is required if the contract termination is after the 8th anniversary of the effective date. During the year ended December 31, 2023, we have recognized $84,426 (2022: $99,629) as development revenue related to this agreement.
(2)	On July 20, 2018, we received a purchase order for MetaVisor (eyewear/eye protection) from Satair A/S for $2.0 million. On November 7, 2018, we received a partial advance payment of $0.5 million against this purchase order. We have set up a guarantee/standby letter of credit with Royal Bank of Canada ("RBC"). In the event we fail to deliver the product as per the contract or refuse to accept the return of the product as per the buyback clause of the contract or fails to repay the advance payment in accordance with the conditions of the agreement signed with Satair on September 18, 2018, Satair shall draw from the letter of credit with RBC. As of December 31, 2023, no amount has been drawn from the letter of credit with RBC. Refer to Note 27 for information regarding the letter of credit.
(3)	In March 2023, we entered into the JDA with the global battery maker under which we provide research and development services in exchange for total consideration of $1.5 million. The consideration is recognized over the 12 months of the performance period. The remaining balance of $0.4 million is expected to be recognize in fiscal year 2024.