Company: AIP
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0001667011-25-000029
Chunk: 21

Company: Arteris, Inc.
Filing Date: 2025-08-05
Form: 10-Q
Item: Part I, Item 1
Chunk 21
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 parties as directors, executive officers, nominees for director and stockholders that have significant influence over the Company, or are a greater than 10% beneficial owner of the Company’s capital and their affiliates or immediate family members. Transchip, an equity method investee of the Company, is also deemed as a related party.On November 15, 2024, the Company entered into a design services licensing collaboration agreement with Transchip. This arrangement gives Transchip a non-exclusive license right to make design house offerings using certain of the Company's products. The Company retains the manufacturing and royalty-related rights in relation to the Company’s products used in the design house offerings. During the three months ended March 31, 2025, the Company delivered a three-year term license to Transchip under this arrangement. During the three months ended June 30, 2025, the Company performed a reassessment of the agreement with Transchip in accordance with ASC 606, Revenue from Contracts with Customers. Specifically, the Company reevaluated whether a contract existed under step one of the five step approach, which requires that it is probable that the Company will collect the consideration to which it will be entitled in exchange for the goods or services that will be transferred to the customer. As a result of this reassessment, the Company concluded that the criteria for the existence of the contract under ASC 606 were not met as of June 30, 2025. Consequently, the previously recognized amounts related to this arrangement were reversed. The reversal resulted in a decrease to both accounts receivable and deferred revenue of $0.7 million. The impact on revenue was not material in any period.

15. SEGMENT AND GEOGRAPHIC INFORMATION

The Company operates in one reportable segment, as more fully described in Note 2. The Company’s CODM reviews and allocates resources using the Company’s financial performance, primarily the net loss presented in the consolidated statements of operations. Other financial performance measures include Annual Contract Value (ACV), ACV plus royalties and remaining performance obligations. The CODM is regularly provided with only the consolidated expenses as noted on the face of the consolidated statements of operations, that are considered as significant expenses. Interest expense and other income (expense), net as presented in the consolidated statements of operations are not considered as significant expenses.

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MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our unaudited condensed