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REVENUE FROM CONTRACTS WITH CUSTOMERS
 6 Months Ended
Mar. 31, 2023
REVENUE FROM CONTRACTS WITH CUSTOMERS  
REVENUE FROM CONTRACTS WITH CUSTOMERS

2. REVENUE FROM CONTRACTS WITH CUSTOMERS

DSA

The DSA segment generates service revenue through drug discovery and development services. The DSA segment generates product revenue through internally-manufactured scientific instruments for life sciences research and the related software for use by pharmaceutical companies, universities, government research centers and medical research institutions under the Company’s BASi product line.

RMS

The RMS segment generates products revenue through the commercial production and sale of research models, diets and bedding and bioproducts. The RMS segment generates service revenue through Genetically Engineered Models and Services (GEMS), client-owned animal colony care, and health monitoring and diagnostics services related to research models.

Contract Assets and Liabilities from Contracts with Customers

The timing of revenue recognition, billings and cash collections results in billed receivables (trade receivables), contract assets (unbilled revenue), and contract liabilities (customer deposits and deferred revenue) on the condensed consolidated balance sheets. The following table provides information about contract assets (trade receivables and unbilled revenue, excluding allowances for credit losses), and fees invoiced in advance (customer deposits and deferred revenue):

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Balance at

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Balance at

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March 31, 

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September 30, 

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2023

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2022

Contract assets: Trade receivables

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$

65,127

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$

88,867

Contract assets: Unbilled revenue

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​

16,410

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​

17,474

Contract liabilities: Customer deposits

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​

36,761

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​

39,222

Contract liabilities: Deferred revenue

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​

18,435

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​

29,420

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When the Company does not have the unconditional right to advanced billings, both advanced client payments and unpaid advanced client billings are excluded from deferred revenue, with the advanced billings also being excluded from client receivables. The Company excluded approximately $15,419 and $2,647 of unpaid advanced client billings from both client receivables and deferred revenue in the accompanying unaudited condensed consolidated balance sheets as of March 31, 2023 and September 30, 2022, respectively.

Changes in the contract asset and the contract liability balances during the six months ended March 31, 2023 include the following:

●Changes in the time frame for a right for consideration to become unconditional – approximately 85% of unbilled revenue as of September 30, 2022, was billed during the six months ended March 31, 2023
●Changes in the time frame for a performance obligation to be satisfied – approximately 55% of deferred revenue as of September 30, 2022, was recognized as revenue during the six months ended March 31, 2023.