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REVENUE FROM CONTRACTS WITH CUSTOMERS
 3 Months Ended
Mar. 31, 2024
Revenue from Contract with Customer [Abstract]  
REVENUE FROM CONTRACTS WITH CUSTOMERS
3. REVENUE FROM CONTRACTS WITH CUSTOMERS
Disaggregation of revenue
Nature of Products and Services
The following table depicts the disaggregation of revenue by type of products or services and timing of transfer of products or services (in thousands):
Three Months Ended March 31,
20242023
Type of products or services
QCaaS$1,692 $1,168 
Professional services639 293 
Other revenue*134 122 
Total revenue$2,465 $1,583 
Timing of revenue recognition
Revenue recognized over time$2,405 $1,542 
Revenue recognized at a point in time60 41 
Total revenue$2,465 $1,583 
*Other revenue includes training, support, maintenance and printed circuit board sales. For the three months ended March 31, 2023, training and maintenance have been reclassified from professional services to other revenue.
Geographic Information
The following table presents a summary of revenue by geography for the years ended March 31, 2024 and 2023, based on customer location:
Three Months Ended March 31,
20242023
United States$723 $247 
Germany512 288 
Japan325 308 
Other905 740 
Total revenue$2,465 $1,583 
"Other" includes the rest of Europe, the Middle East, Africa, Asia, Canada and Australia where the revenue from a single country is not greater than 10% of total consolidated revenue. The Company has not had any sales in China, Russia or Ukraine.
Significant customers
The Company had significant customers during the three months ended March 31, 2024 and 2023. A significant customer is defined as one that comprises up to ten percent or more of total revenues in a particular year or ten percent of outstanding accounts receivable balance as of the period end.
The tables below present the significant customers on a percentage of total revenue basis for the three months ended March 31, 2024 and 2023.
Three Months Ended March 31,
20242023
Customer A18 %15 %
Customer B— 13 %
As of each of March 31, 2024 and 2023, there were three significant customers, respectively, that comprised ten percent or more of outstanding accounts receivable balances.
Contract balances
The following table provides information about account receivable, contract assets and liabilities as of March 31, 2024 and December 31, 2023 (in thousands):
As of March 31, 2024 As of December 31, 2023
Trade accounts receivable and contract assets, net:
Trade account receivable, excluding unbilled receivables$1,098 $644 
Contract asset for unbilled receivables637 1,008 
Contract liabilities:
Deferred revenue, current$1,999 $2,669 
Deferred revenue, non-current399 79 
Customer deposit1
45 45 
Total contract liabilities$2,443 $2,793 
1Customer deposit is included in accrued expenses and other current liabilities on the condensed consolidated balance sheets.
The allowance for credit loss was immaterial as of March 31, 2024 and December 31, 2023. Write-offs were immaterial during the three months ended March 31, 2024 and 2023.
The revenue recognized in the condensed consolidated statements of operations and comprehensive loss that was included in the contract liability balance at the beginning of each period was $1.4 million and $1.2 million for the three months ended March 31, 2024 and 2023, respectively.
Changes in deferred revenue from contracts with customers were as follows (in thousands):
Three Months Ended March 31,
20242023
Balance at beginning of period$2,748 $1,790 
Deferral of revenue2,113 1,166 
Recognition of deferred revenue(2,463)(1,120)
Balance at end of period$2,398 $1,836 
Remaining performance obligations
A significant number of the Company’s product and service sales are short-term in nature with a contract term of one year or less. For those contracts, the Company has utilized the practical expedient in ASC 606-10-50-14 exempting the Company from disclosure of the transaction price allocated to remaining performance obligations if the performance obligation is part of a contract that has an original expected duration of one year or less.
As of March 31, 2024, the aggregate amount of remaining performance obligations that were unsatisfied or partially unsatisfied related to customer contracts was $7.4 million, of which approximately 57% is expected to be recognized to revenue in the next 12 months, 91% is expected to be recognized to revenue in the next two years and substantially all of the remainder will be recognized within three years. Revenues allocated to remaining performance obligations represents the transaction price of noncancellable orders for which service has not been performed, which include deferred revenue and the amounts that will be invoiced and recognized as revenues in future periods from open contracts and excludes unexercised renewals.