Company: NOTV
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001628280-25-023370
Chunk: 27

Company: Inotiv, Inc.
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 1
Chunk 27
---
 related to research models. Refer to Note 1 – Description of the Business and Basis of Presentation for further discussion of types of services and products offered within the RMS segment.

13

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):Balance atMarch 31, 2025Balance atSeptember 30, 2024Contract assets: Trade receivables$65,313 $65,867 Contract assets: Unbilled revenue11,529 14,624 Contract liabilities: Client deposits24,044 24,898 Contract liabilities: Deferred revenue16,419 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 $10,879 and $10,399 of unpaid advanced client billings from both client receivables and deferred revenue as of March 31, 2025 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 six months ended March 31, 2025 include the following: •Changes in the time frame for a right for consideration to become unconditional – approximately 77% of unbilled revenue as of September 30, 2024, was billed during the six months ended March 31, 2025; and•Changes in the time frame for a performance obligation to be satisfied – approximately 66% of deferred revenue as of September 30, 2024, was recognized as revenue during the six months ended March 31, 2025.

3.    SEGMENT AND GEOGRAPHIC INFORMATIONSegment InformationDuring the three and six months ended March 31, 2025, the RMS segment reported intersegment revenue of $2,994 and $4,266, respectively, related to sales to the DSA segment. During the three