Company: NEOG
Filing Date: 2025-01-15
Form Type: 10-Q
Source: 0000950170-25-005818
Chunk: 55

Company: NEOGEN CORP
Filing Date: 2025-01-15
Form: 10-Q
Item: Item 8
Chunk 55
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 •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

8

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