Company: AIP
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0001667011-25-000029
Chunk: 9

Company: Arteris, Inc.
Filing Date: 2025-08-05
Form: 10-Q
Item: Part I, Item 1
Chunk 9
---
 $25,292 Variable royalties1,402 971 2,569 1,789 Other12 51 42 441 Total$16,502 $14,575 $33,034 $27,522 Contract BalancesThe following table provides information about accounts receivable, net, contract assets and deferred revenue (in thousands):As ofJune 30,2025December 31,2024Accounts receivable, net$18,753 $20,608 Contract assets, current portion$34 $167 Deferred revenue$81,947 $75,622 The Company recognized revenue of $14.0 million and $11.5 million for the three months ended June 30, 2025 and 2024, respectively, and $25.5 million and $20.6 million for the six months ended June 30, 2025 and 2024, respectively, that was included in the deferred revenue balance at the beginning of the respective periods. Contract assets, current are included in prepaid expenses and other current assets on the consolidated balance sheets.

11

As of June 30, 2025, non-cancelable contracted but unsatisfied or partially satisfied performance obligations that have not yet been recognized were $95.8 million which includes deferred revenue, amounts that will be invoiced and recognized as revenues in future periods and Flexible Spending Accounts (FSA) commitments, from customers where actual product selection and quantities of specific products are to be determined by customers at a future period. The Company expects to recognize $48.2 million of this balance over the next 12 months and the remainder thereafter. FSA commitments amounted to $6.0 million and $2.3 million as of June 30, 2025 and December 31, 2024, respectively. The Company has elected to exclude the potential future royalty receipts from these amounts.Costs of Obtaining a Contract with a CustomerIncremental costs of obtaining a contract with a customer consist primarily of direct sales commissions incurred upon execution of the contract. These costs are required to be capitalized under ASC 340-40, Other Assets and Deferred Costs—Contracts With Customers, and amortized over the license term. As direct sales commissions paid for term extensions are commensurate with the amounts paid for initial contracts, the deferred incremental costs for initial contracts and for term extensions are recognized over the respective contract terms. Total capitalized direct commission costs were as follows (in thousands):As ofJune 30,