|12 Months Ended|
Dec. 31, 2020
|Revenue Recognition [Abstract]|
Revenue by Service Line
During the year ended December 31, 2020, the Company recognized capital equipment and software-related service revenue of approximately $0.5 million which was previously included in deferred revenue in the accompanying consolidated balance sheet at December 31, 2019.
In September 2019, the Company entered into a Development Services Agreement with a customer under which the Company was entitled to bill the customer for an upfront payment of $0.13 million, of which approximately $0.05 million and $0.10 million are included in deferred revenue in the accompanying December 31, 2020 and 2019 consolidated balance sheets, respectively.
Also, in September 2019, the Company entered into a Letter of Intent, followed by a related Statement of Work (together with the Letter of Intent, the “Project Documents”) in November 2019, with a customer which is a stockholder (and, commencing in 2020, a noteholder, as described in Note 6) and whose then Chief Operating Officer was a member of the Company’s Board of Directors (and was subsequently replaced with the customer’s Chief Development Officer), to commence a product development project. Under the terms of the Project Documents, the Company was entitled to bill the customer for: (a) an upfront, nonrefundable payment of $0.5 million; and (b) quarterly service fees of $0.5 million commencing in the fourth quarter of 2019. In February 2020, the Company entered into a Supply Agreement and a Statement of Work (the “European SOW”) with a European affiliate of the customer. Under the terms of the European SOW, the Company was entitled to bill the customer on a quarterly basis, commencing in the first quarter of 2020, for service fees of $0.25 million. During 2020, the clinical trials contemplated by the Project Documents and the European SOW were delayed as a result of the COVID-19 pandemic. As a result, the Company agreed to reduce such quarterly service fees by an aggregate of $0.25 million through September 30, 2020. In November 2020, the Company entered into an addendum to the Project Documents and the European SOW that, among other provisions, set the customer’s aggregate at $0.7 million per quarter, effective October 1, 2020. The Company recognizes as revenue each of the upfront payments described in this paragraph in proportional relationship to the transaction prices of the performance obligations contained in the related agreements and recognizes as revenue the quarterly service fees described in this paragraph as stand-by services beginning in the quarter such services commenced. Based on the foregoing: (a) the Company recognized revenue of approximately $3.5 million and $0.5 million for the years ended December 31, 2020 and 2019, respectively; (b) accounts receivable from the customer amounted to approximately $0.1 million at each of December 31, 2020 and 2019; and (c) approximately $0.1 million and $0.6 million of the aggregate amount of all the payments described in this paragraph were included in deferred revenue in the accompanying consolidated balance sheets as of December 31, 2020 and 2019, respectively.
The Company offers an upgraded version of its software at no additional charge to customers purchasing a three-year systems service agreement. The transaction prices of the software and the service agreement were determined through an allocation of the service agreement price based on the standalone prices of the software and the service agreements customarily charged by the Company. The transaction price of the software was recognized as revenue upon its installation and comprised approximately $0.1 million and $0.2 million of unbilled accounts receivable at December 31, 2020 and 2019, respectively.
Remaining Performance Obligations
The Company’s contracts with customers, other than capital equipment and software-related service agreements discussed below, are predominantly for terms of less than one year. Accordingly, the transaction price of remaining performance obligations related to such contracts at December 31, 2020 are not material.
Revenue with respect to remaining performance obligations related to capital equipment and software-related service agreements with original terms in excess of one year and the upfront payments discussed under the heading “Contract Balances” above amounted to approximately $0.5 million at December 31, 2020. The Company expects to recognize this revenue within the next three years.
The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.
Reference 1: http://www.xbrl.org/2003/role/disclosureRef