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REVENUES
 3 Months Ended 12 Months Ended
Mar. 31, 2024
Dec. 31, 2023
Revenue from Contract with Customer [Abstract]    
REVENUES

NOTE 5 – REVENUES:

 

Disaggregation of revenue

 

   2024   2023 
  

Three months

ended

March 31,

 
   2024   2023 
   USD in thousands 
Development Services (customer A) (*)   106    106 
Products   81    197 
Revenue   187    303 

 

  (*) During the second quarter of 2022, the Company completed the development of to a customer-specific project for a Fortune 500 multinational healthcare corporation (“Customer A”) and moved from the development phase of the project to its production phase. As a result, during the three months ended March 31, 2024, the Company recognized development services revenues and related development costs that had been previously deferred, in the amounts of $106 thousand and $60 thousand, respectively. The amounts were recognized based on the expected manufacturing term of the product, which the Company estimates at seven years.

 

Contract fulfillment assets and Contract liabilities:

 

The Company’s contract fulfillment assets and contract liabilities as of March 31, 2024 and December 31, 2023 were as follows:

 

   March 31,   December 31, 
   2024   2023 
   USD in thousands 
Contract fulfillment assets   1,196    1,256 
Contract liabilities   2,247    2,322 

 

Contract liabilities include deferred service and advance payments.

 

The change in contract fulfillment assets:

 

   March 31,   December 31, 
   2024   2023 
   USD in thousands 
Balance at beginning of period   1,256    1,495 
Contract costs recognized during the period   (60)   (239)
Balance at end of period   1,196    1,256 

 

The change in contract liabilities:

 

   March 31,   December 31, 
   2024   2023 
   USD in thousands 
Balance at beginning of period   2,322    3,644 
Revenue recognized during the period   (75)   (1,322)
Balance at end of period   2,247    2,322 

 

Remaining Performance Obligations

 

Remaining Performance Obligations (“RPO”) represents contracted revenue that has not yet been recognized, which includes deferred revenue and amounts that will be invoiced and recognized as revenue in future periods. As of March 31, 2024, the total RPO amounted to $2.2 million, which the Company expects to recognize over the expected manufacturing term of the product.

 

NOTE 10 – REVENUES AND ENTITY WIDE DISCLOSURES:

 

ASC 280, “Segment Reporting,” establishes standards for reporting information about operating segments. The Company manages its business based on one operating segment, as described in Note 1.

 

  a. Disaggregation of revenue

 

 SCHEDULE OF DISAGGREGATION OF REVENUE

   2023   2022 
   Year ended on
December 31,		 
   2023   2022 
   USD in thousands 
Development Services (customer A) (*)   422    317 
Products   2,611    348 
Revenue   3,033    665 

 

 

(*)

During the second quarter of 2022, the Company completed the development of to a customer-specific project for a Fortune 500 multinational healthcare corporation (“Customer A”) and moved from the development phase of the project to its production phase. As a result, during the year ended December 31, 2023, the Company recognized development services revenues and related development costs that had been previously deferred, in the amounts of $422 thousand and $239 thousand, respectively. The amounts were recognized based on the expected manufacturing term of the product, which the Company estimates at 7 years.

     
    In addition, following the commencement of the production phase, the Company recognized product revenues of $2,514 thousands during the year ended December 31, 2023 from the sale of units of the product developed in the context of these development services.

 

  b. Revenues by geographical area (based on the location of customers)

 

The following is a summary of revenues within geographic areas:

 

   2023   2022 
   Year ended on
December 31,		 
   2023   2022 
   USD in thousands 
United States   2,983    553 
United Kingdom   4    65 
Israel   27    - 
Other   19    47 
Revenue   3,033    665 

 

  c. Major customers

 

Set forth below is a breakdown of Company’s revenue by major customers (major customer –revenues from these customers constituted at least 10% of total revenues in a certain year):

 SCHEDULE OF MAJOR CUSTOMER BREAKDOWN OF COMPANY’S REVENUE

   Year ended on 
   December 31, 
   2023   2022 
   USD in thousands 
Customer A   2,977    538 
           
Customer B   -    65 

 

 

  d. Contract fulfillment assets and Contract liabilities:

 

    2023     2022  
    December 31,  
    2023     2022  
    USD in thousands  
Contract fulfillment assets     1,256       1,495  
Contract liabilities     2,322       3,644  

 

Contract liabilities include deferred service and advance payments.

 

The change in contract fulfillment assets:

 

   2023   2022 
   December 31, 
   2023   2022 
   USD in thousands 
         
Balance at beginning of year   1,495    1,675 
Contract costs recognized during the period   (239)   (180)
Balance at end of year   1,256    1,495 

 

The change in contract liabilities:

 

   2023   2022 
   December 31, 
   2023   2022 
   USD in thousands 
         
Balance at beginning of year   3,644    2,420 
Deferred revenue relating to new sales   -    1,613 
Revenue recognized during the year   (1,322)   (389)
Balance at end of year   2,322    3,644 

 

Remaining Performance Obligations

 

Remaining Performance Obligations (“RPO”) represents contracted revenue that has not yet been recognized, which includes deferred revenue and amounts that will be recognized as revenue in future periods. As of December 31, 2023, the total RPO amounted to $2.3 million, which the Company expects to recognize over the expected manufacturing term of the product under development.

 

 

ODYSIGHT.AI INC. (Formerly known as ScoutCam Inc.)

 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS