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Revenue Recognition
 9 Months Ended
Feb. 28, 2025
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 February 28/29,

 

 

Nine months ended February 28/29,

 

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

Beginning balance

 

$

5,651

 

 

$

4,679

 

 

$

4,632

 

 

$

4,616

 

Additions

 

 

3,021

 

 

 

5,116

 

 

 

10,425

 

 

 

11,094

 

Recognized into revenue

 

 

(2,903

)

 

 

(4,309

)

 

 

(9,288

)

 

 

(10,224

)

Ending balance

 

$

5,769

 

 

$

5,486

 

 

$

5,769

 

 

$

5,486

 

The following table presents disaggregated revenue by major product and service categories during the three and nine months ended February 28, 2025 and February 29, 2024

 

 

Three months ended February 28/29,

 

 

Nine months ended February 28/29,

 

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

Food Safety

 

 

 

 

 

 

 

 

 

 

 

 

Natural Toxins & Allergens

 

$

17,595

 

 

$

19,738

 

 

$

58,479

 

 

$

63,116

 

Bacterial & General Sanitation

 

 

39,882

 

 

 

40,395

 

 

 

122,317

 

 

 

128,393

 

Indicator Testing, Culture Media & Other

 

 

77,744

 

 

 

81,168

 

 

 

242,710

 

 

 

246,812

 

Biosecurity Products

 

 

11,815

 

 

 

10,136

 

 

 

35,717

 

 

 

32,180

 

Genomics Services

 

 

5,695

 

 

 

6,317

 

 

 

17,091

 

 

 

17,934

 

 

$

152,731

 

 

$

157,754

 

 

$

476,314

 

 

$

488,435

 

Animal Safety

 

 

 

 

 

 

 

 

 

 

 

 

Life Sciences

 

$

1,504

 

 

$

1,372

 

 

$

4,864

 

 

$

4,710

 

Veterinary Instruments & Disposables

 

 

15,412

 

 

 

17,976

 

 

 

45,209

 

 

 

47,845

 

Animal Care & Other

 

 

10,497

 

 

 

10,066

 

 

 

26,951

 

 

 

27,226

 

Biosecurity Products

 

 

23,827

 

 

 

23,055

 

 

 

66,557

 

 

 

65,694

 

Genomics Services

 

 

17,009

 

 

 

18,589

 

 

 

49,307

 

 

 

53,518

 

 

 

68,249

 

 

 

71,058

 

 

 

192,888

 

 

 

198,993

 

Total Revenues

 

$

220,980

 

 

$

228,812

 

 

$

669,202

 

 

$

687,428