Company: NOTV
Filing Date: 2025-02-06
Form Type: 10-Q
Source: 0001628280-25-004178
Chunk: 106

Company: Inotiv, Inc.
Filing Date: 2025-02-06
Form: 10-Q
Item: Part II, Item 8
Chunk 106
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 RMS segment.Contract Assets and Liabilities from Contracts with ClientsThe timing of revenue recognition, billings and cash collections results in billed receivables (trade receivables), contract assets (unbilled revenue), and contract liabilities (client 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 (client deposits and deferred revenue):

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Balance atDecember 31, 2024Balance atSeptember 30, 2024Contract assets: Trade receivables$61,255 $65,867 Contract assets: Unbilled revenue15,306 14,624 Contract liabilities: Client deposits28,902 24,898 Contract liabilities: Deferred revenue17,227 17,088When 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 $8,500 and $10,399 of unpaid advanced client billings from both client receivables and deferred revenue as of December 31, 2024 and September 30, 2024, respectively.The Company expects approximately 80% of deferred revenue to be recognized as revenue within the next twelve months and the remainder to be recognized thereafter during the remaining contract term.Changes in the contract asset and the contract liability balances during the three months ended December 31, 2024 include the following: •Changes in the time frame for a right for consideration to become unconditional – approximately 50% of unbilled revenue as of September 30, 2024, was billed during the three months ended December 31, 2024; and•Changes in the time frame for a performance obligation to be satisfied – approximately 50% of deferred revenue as of September 30, 2024, was recognized as revenue during the three months ended December 31, 2024.

3.    SEGMENT AND GEOGRAPHIC INFORMATIONSegment InformationDuring the three months ended December 31, 2024 and 2023, the RMS segment reported intersegment revenue of $1,272 and $896, respectively, related to sales to the DSA segment. The following table presents revenue, operating income (loss) and other results of operations by reportable segment for the three months ended December 31, 2024 and 202