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Revenue Recognition
 3 Months Ended
Aug. 31, 2024
Revenue from Contract with Customer [Abstract]  
Revenue Recognition

2. REVENUE RECOGNITION

The Company derives revenue from two primary sources—product revenue and service revenue.

Product revenue consists of shipments of:

•
Diagnostic test kits, culture media and related products used by food producers and processors to detect harmful natural toxins, foodborne bacteria, allergens and levels of general sanitation;
•
Consumable products marketed to veterinarians, retailers, livestock producers and animal health product distributors; and
•
Biosecurity products to assist in the control of rodents, insects and disease in and around agricultural, food production and other facilities.

Revenues for our products are recognized and invoiced when the product is shipped to the customer.

Service revenue consists primarily of:

•
Genomic identification and related interpretive bioinformatic services;
•
Neogen Analytics; and
•
Other commercial laboratory services.

Revenues for Neogen’s genomics and commercial laboratory services are recognized and invoiced when the applicable laboratory service is performed and the results are conveyed to the customer.

Payment terms for products and services are generally 30 to 60 days.

Contract liabilities represent deposits made by customers before the satisfaction of performance obligation(s) and recognition of revenue. Upon completion of the performance obligation(s) that the Company has with the customer, the liability for the customer deposit is relieved and revenue is recognized. These customer deposits are recorded within deferred revenue on the condensed consolidated balance sheets. Changes in the balances relate primarily to sales of the Company's genomics services.

The following table summarizes contract liabilities by period:

 

Three months ended August 31,

 

 

 

2024

 

 

2023

 

 

 

 

 

 

 

 

Beginning balance

 

$

4,632

 

 

$

4,616

 

Additions

 

 

3,078

 

 

 

1,857

 

Amounts recognized into revenue

 

 

(2,075

)

 

 

(2,684

)

Ending balance

 

$

5,635

 

 

$

3,789

 

 

The following table presents disaggregated revenue by major product and service categories during the three months ended August 31, 2024 and August 31, 2023:

 

 

Three months ended August 31,

 

 

 

2024

 

 

2023

 

Food Safety

 

 

 

 

 

 

Natural Toxins & Allergens

 

$

20,376

 

 

$

22,268

 

Bacterial & General Sanitation

 

 

39,899

 

 

 

45,224

 

Indicator Testing, Culture Media & Other

 

 

81,703

 

 

 

81,886

 

Biosecurity Products

 

 

11,779

 

 

 

11,090

 

Genomics Services

 

 

5,588

 

 

 

5,810

 

 

$

159,345

 

 

$

166,278

 

Animal Safety

 

 

 

 

 

 

Life Sciences

 

$

1,733

 

 

$

1,661

 

Veterinary Instruments & Disposables

 

 

12,523

 

 

 

12,932

 

Animal Care & Other

 

 

6,679

 

 

 

8,175

 

Biosecurity Products

 

 

20,806

 

 

 

22,686

 

Genomics Services

 

 

15,878

 

 

 

17,255

 

 

 

57,619

 

 

 

62,709

 

Total Revenues

 

$

216,964

 

 

$

228,987