Quarterly report [Sections 13 or 15(d)]

Revenue

v3.26.1
Revenue
 3 Months Ended
Mar. 31, 2026
Revenue [Abstract]  
REVENUE

NOTE 3 – REVENUE

 

The following table presents our disaggregated revenues by type, timing and geographical region.

 

    Three Months Ended
March 31,		  
(dollars in thousands)   2026     2025  
Type of Revenue            
Product revenue   $ 38,368     $ 3,224  
Service revenue     9,323       809  
Development revenue     2,431       215  
Total revenues   $ 50,122     $ 4,248  
                 
Timing of Revenue                
Revenue recognized point in time   $ 40,562     $ 3,984  
Revenue recognized over time     9,560       264  
Total revenue   $ 50,122     $ 4,248  
                 
Geographical region                
Israel   $ 21,598     $ 2,488  
Europe     12,071      
-
  
Asia - Other     12,000      
-
  
North America     3,313       216  
United Arab Emirates     305       1,533  
Other Countries     835       11  
Total revenues   $ 50,122     $ 4,248  

Contract Assets and Liabilities

 

The Company recognizes a receivable or contract asset when we perform a service or transfer a good in advance of receiving consideration. A receivable is recorded when our right to consideration is unconditional and only the passage of time is required before payment of that consideration is due. A contract asset is recorded when we have recognized revenue over time in accordance with meeting our performance obligation but are unable to invoice the customer yet based on the contractual invoicing terms. The contract asset is reclassified to a receivable when the right to consideration becomes unconditional. Contract assets are included in other current assets on the condensed consolidated balance sheets. The table below details the activity in our contract assets during the three months ended March 31, 2026 and the year ended December 31, 2025.

 

(dollars in thousands)   Three Months
Ended
March 31,
2026		     Year Ended
December 31,
2025		  
Balance, beginning of period   $ 3,171     $ 206  
Contract assets recognized     15,488       8,476  
Reclassification to accounts receivable, net     (2,676 )     (5,511 )
Balance, end of period   $ 15,983     $ 3,171  

 

The Company recognizes a contract liability (deferred revenue) when we receive consideration from a customer, or if we have the unconditional right to consideration (i.e., a receivable), prior to satisfying the performance obligation. A contract liability is our obligation to transfer goods or services to a customer for which we have received consideration, or an amount of consideration is due from the customer. The table below details the activity in our contract liabilities during the three months ended March 31, 2026, and the year ended December 31, 2025.

 

(dollars in thousands)   Three Months
Ended
March 31,
2026		     Year Ended
December 31,
2025		  
Balance, beginning of period   $ 8,501     $ 329  
Contract liabilities acquired in business combinations     14,253       7,374  
Effect of deconsolidation of subsidiary     (337 )    
-
  
Additions     4,892       9,542  
Recognized as revenue     (7,477 )     (8,744 )
Balance, end of period   $ 19,832     $ 8,501  

 

Revenue recognized during the three months ended March 31, 2026 and 2025 that was included in the contract liability opening balance, was $2.2 million and $12 thousand, respectively. As of March 31, 2026 and December 31, 2025, $205 thousand and $472 thousand of the contract liability balance represents long-term deferred revenue and is included in other liabilities on the consolidated balance sheets, respectively.