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Revenue
 6 Months Ended
Dec. 31, 2023
Revenue  
Revenue

4. Revenue

 

Product Revenue

 

We are a manufacturer of optical components and higher-level assemblies, including precision molded glass aspheric optics, molded and diamond-turned infrared optical components, and other optical materials used to produce products that manipulate light. We design, develop, manufacture, and distribute optical components and assemblies utilizing advanced optical manufacturing processes. We also provide engineering services and perform research and development for optical solutions for a wide range of optics markets. Revenue is derived primarily from the sale of optical components and assemblies.

 

Revenue Recognition

 

Revenue is generally recognized upon transfer of control, including the risks and rewards of ownership, of products or services to customers in an amount that reflects the consideration we expect to receive in exchange for those products or services. We generally bear all costs, risk of loss, or damage and retain title to the goods up to the point of transfer of control of products to customers. Shipping and handling costs are included in the cost of goods sold. We present revenue net of sales taxes and any similar assessments.

 

Customary payment terms are granted to customers, based on credit evaluations. We currently do not have any contracts where revenue is recognized, but the customer payment is contingent on a future event. We record deferred revenue when cash payments are received or due in advance of revenue recognition. Deferred revenue was $759,000 and $314,000 as of December 31, 2023 and June 30, 2023, respectively, and is included in accrued liabilities in the accompanying condensed consolidated balance sheets.

Nature of Products

 

Revenue from the sale of optical components and assemblies is recognized upon transfer of control, including the risks and rewards of ownership, to the customer. The performance obligations for the sale of optical components and assemblies are satisfied at a point in time. Product development agreements for engineering services are generally short-term in nature, with revenue recognized upon satisfaction of the performance obligation, and transfer of control of the agreed-upon deliverable. Visimid has one longer-term order with a customer which includes both product development and hardware deliverables where similar revenue recognition criteria will be applied.

 

We previously organized our products in three groups: precision molded optics (“PMO”), infrared, and specialty products. Revenues from product development agreements for engineering services were included in specialty products. With our strategic transition into more value-added solutions, and the addition of Visimid in July 2023, we reorganized our products into four product groups: infrared components, visible components, assemblies and modules, and engineering services. Assemblies and modules were previously included in PMO, infrared or specialty products, depending on the lens type.

 

Revenue by product group for the three and six months ended December 31, 2023 and 2022 was as follows, with 2022 amounts reclassified from those previously reported to conform to current classification:

 

 

 

Three Months Ended

December 31,

 

 

Six Months Ended

December 31,

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Infrared components

 

$3,572,853

 

 

$3,290,328

 

 

$7,407,455

 

 

$6,479,879

 

Visible components

 

 

2,678,904

 

 

 

3,876,627

 

 

 

5,367,239

 

 

 

7,144,285

 

Assemblies and modules

 

 

986,683

 

 

 

1,227,873

 

 

 

2,248,722

 

 

 

2,098,605

 

Engineering services

 

 

77,197

 

 

 

77,851

 

 

 

369,469

 

 

 

116,811

 

Total revenue

 

$7,315,637

 

 

$8,472,679

 

 

$15,392,885

 

 

$15,839,580