Revenue and Contracts with Customers

12 Months Ended

Dec. 31, 2022

Revenue from Contract with Customer [Abstract]

Revenue and Contracts with Customers

3. Revenue and Contracts with Customers

Contract Balances

Timing differences between revenue recognized, billings, and customer payments result in contract assets and liabilities. Contract assets represent revenue recognized in excess of customer billings. Contract liabilities represent payments received from customers in advance of satisfying performance obligations. The Company had no contract assets or liabilities as of December 31, 2022 and 2021.

Deferred Contract Costs

The Company defers costs associated with fulfilling its contracts if those costs meet all of the following criteria: (i) the costs relate directly to a contract, (ii) the costs generate or enhance resources of the Company that will be used in satisfying performance obligations in the future, and (iii) the costs are expected to be recovered. The Company had deferred contract costs totaling $0.1 million as of December 31, 2022, (none as of December 31, 2021). Deferred contract costs are included in prepaid and other current assets in the consolidated balance sheets. As of December 31, 2022, the Company had backlog, or revenue related to remaining performance obligations of $1.4M. We expect that all the backlog will be recognized in 2023.