Annual report pursuant to Section 13 and 15(d)

REVENUE RECOGNITION

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REVENUE RECOGNITION
 12 Months Ended
Dec. 31, 2023
Revenue from Contract with Customer [Abstract]  
REVENUE RECOGNITION REVENUE RECOGNITION
Disaggregated Revenue

The table below sets forth a summary of revenue by major service line:
For the Year Ended December 31,
(in thousands) 2023 2022
Services:
IoT Connectivity (1)
$ 200,066  $ 173,526 
IoT Solutions 12,579  15,459 
$ 212,645  $ 188,985 
Products:
Hardware (2)(3)
$ 63,965  $ 79,462 
Total $ 276,610  $ 268,447 

(1) Includes connectivity-related revenue from IoT Connectivity and IoT Solutions.
(2) Includes hardware-related revenue from IoT Connectivity and IoT Solutions.
(3) Includes $6.4 million and $10.7 million of bill-and-hold arrangements for the years ended December 31, 2023 and 2022, respectively.

The table below sets forth a summary of revenue by geographic area:

For the Year Ended December 31,
(in thousands) 2023 2022
United States $ 223,172  $ 211,599 
Other countries 53,438  56,848 
Total $ 276,610  $ 268,447 

Contract Assets

The following table sets forth the change in contract assets, or unbilled receivables (1):

(in thousands) December 31, 2023
Beginning balance $ — 
Revenue recognized during the period but not billed (2)
2,173 
Amounts reclassified to accounts receivable — 
Ending balance $ 2,173 

(1) There were no contract assets as of or for the year ended December 31, 2022.
(2) Net of financing component of $0.3 million.

Contract Liabilities

The table below sets forth the change in contract liabilities, or deferred revenue:

December 31,
(in thousands) 2023 2022
Beginning balance $ 7,817  $ 6,889 
Amounts billed but not recognized as revenue 9,041  7,814 
Revenue recognized from balances held at the beginning of the period (7,817) (6,889)
Foreign exchange 3  3 
Ending balance $ 9,044  $ 7,817 

Remaining Performance Obligations

Remaining performance obligations represent the aggregate amount of the transaction price in contracts allocated to performance obligations that are unsatisfied, or partially unsatisfied, at the end of the reporting period. Remaining performance obligations estimates are subject to change and are affected by several factors, including terminations, changes in the scope of contracts, periodic revalidations, adjustments for
revenue that has not materialized, and adjustments for currency. As of December 31, 2023 the Company had approximately $13.1 million of remaining performance obligations on contracts with an original duration of one year or more. The Company expects to recognize approximately 67% of these remaining performance obligations in 2024, with the remaining of balance recognized thereafter.

The Company has variable consideration of approximately $1.4 million that was constrained revenue and excluded from the transaction price as of December 31, 2023. There were no material instances where variable consideration was constrained and not recorded at the initial time of sale for the year ended December 31, 2022.

Costs to Obtain and Fulfill a Contract

The Company did not have material costs related to obtaining a contract, or fulfilling a contract that are not addressed by other accounting standards, with amortization periods greater than one year as of December 31, 2023 and 2022.

Customer Concentrations

The Company did not have concentrations in revenue from customers or related accounts receivable for the year ended or as of December 31, 2023.

The Company had one customer, a large multinational medical device and health care company that represented 11% of the Company’s total revenue and 16% of the Company’s total accounts receivable as of and for the year ended December 31, 2022.