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Revenue Recognition
 6 Months Ended
Nov. 30, 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. Revenues for Neogen Analytics is earned ratably over the term of the underlying agreement.

Payment terms for products and services are generally 30 to 90 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 and Neogen Analytics.

The following table summarizes contract liabilities by period:

 

Three months ended November 30,

 

 

Six months ended November 30,

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Beginning balance

 

$

5,635

 

 

$

3,789

 

 

$

4,632

 

 

$

4,616

 

Additions

 

 

4,326

 

 

 

4,121

 

 

 

7,404

 

 

 

5,978

 

Recognized into revenue

 

 

(4,310

)

 

 

(3,231

)

 

 

(6,385

)

 

 

(5,915

)

Ending balance

 

$

5,651

 

 

$

4,679

 

 

$

5,651

 

 

$

4,679

 

 

The following table presents disaggregated revenue by major product and service categories during the three and six months ended November 30, 2024 and 2023:

 

 

Three months ended November 30,

 

 

Six months ended November 30,

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Food Safety

 

 

 

 

 

 

 

 

 

 

 

 

Natural Toxins & Allergens

 

$

20,508

 

 

$

21,110

 

 

$

40,884

 

 

$

43,378

 

Bacterial & General Sanitation

 

 

42,536

 

 

 

42,774

 

 

 

82,435

 

 

 

87,998

 

Indicator Testing, Culture Media & Other

 

 

83,263

 

 

 

83,758

 

 

 

164,966

 

 

 

165,644

 

Biosecurity Products

 

 

12,123

 

 

 

10,954

 

 

 

23,902

 

 

 

22,044

 

Genomics Services

 

 

5,808

 

 

 

5,807

 

 

 

11,396

 

 

 

11,617

 

 

$

164,238

 

 

$

164,403

 

 

$

323,583

 

 

$

330,681

 

Animal Safety

 

 

 

 

 

 

 

 

 

 

 

 

Life Sciences

 

$

1,627

 

 

$

1,677

 

 

$

3,360

 

 

$

3,338

 

Veterinary Instruments & Disposables

 

 

17,274

 

 

 

16,937

 

 

 

29,797

 

 

 

29,869

 

Animal Care & Other

 

 

9,775

 

 

 

8,985

 

 

 

16,454

 

 

 

17,160

 

Biosecurity Products

 

 

21,924

 

 

 

19,953

 

 

 

42,730

 

 

 

42,639

 

Genomics Services

 

 

16,420

 

 

 

17,674

 

 

 

32,298

 

 

 

34,929

 

 

 

67,020

 

 

 

65,226

 

 

 

124,639

 

 

 

127,935

 

Total Revenues

 

$

231,258

 

 

$

229,629

 

 

$

448,222

 

 

$

458,616