Company: AIP
Filing Date: 2025-05-13
Form Type: 10-Q
Source: 0001667011-25-000022
Chunk: 246

Company: Arteris, Inc.
Filing Date: 2025-05-13
Form: 10-Q
Item: Part I, Item 8
Chunk 246
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 ASU 2025-01, is effective for fiscal years beginning after December 15, 2026 and interim periods within fiscal years beginning after December 15, 2027. The Company is currently evaluating the impact of adopting these ASUs on its consolidated financial statements and disclosures.

3.    REVENUE

Disaggregated RevenueThe following table shows revenue by product and services groups (in thousands):Three Months EndedMarch 31,20252024Licensing, support and maintenance$15,335 $11,739 Variable royalties1,167 818 Other30 390 Total$16,532 $12,947 Contract BalancesThe following table provides information about accounts receivable, net, contract assets and deferred revenue (in thousands):As ofMarch 31,2025December 31,2024Accounts receivable, net$10,268 $20,608 Contract assets, current portion$106 $167 Deferred revenue$73,724 $75,622 The Company recognized revenue of $13.5 million and $10.7 million for the three months ended March 31, 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 and contract assets.

10

As of March 31, 2025, non-cancelable contracted but unsatisfied or partially satisfied performance obligations that have not yet been recognized is $85.6 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 $45.3 million of this balance over the next 12 months and the remainder thereafter. FSA commitments amounted to $4.4 million and $2.3 million as of March 31, 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