REVENUE RECOGNITION

6 Months Ended

Oct. 31, 2024

REVENUE RECOGNITION

REVENUE RECOGNITION

4. REVENUE RECOGNITION

Immersion 

Disaggregated Revenue

The following table presents the disaggregation of our revenue of Immersion for the month ended July 31, 2024, and the three and six months ended October 31, 2024 and June 30, 2023 (in thousands):

	One Month Ended		Three Months Ended				Six Months Ended
	July 31, 2024		October 31, 2024		June 30, 2023		October 31, 2024		June 30, 2023
Fixed fee license revenue	$	483	$	10,676	$	1,254	$	56,003	$	2,404
Per-unit royalty revenue		1,417		3,451		5,729		6,549		11,653
Total revenues	$	1,900	$	14,127	$	6,983	$	62,552	$	14,057

As a result of accruing per-unit royalty revenue for the quarter based on such estimates, adjustments will be required in the following quarter to true up revenue to the actual amounts reported by our licensees. In the three months ended October 31, 2024, we recorded no adjustments to royalty revenue recognized in the previous quarter. We recorded adjustments of $0.3 million to increase royalty revenue during the three months ended June 30, 2023.

Contract Assets

As of October 31, 2024, we had contract assets of $6.7 million included within Prepaid expenses and other current assets and $24.3 million within Other assets -noncurrent on the Condensed Consolidated Balance Sheets. As of April 30, 2024, we had contract assets of $6.6 million included within Prepaid expenses and other current assets on the Condensed Consolidated Balance Sheets. 

Contract assets increased by $24.4 million from May 1, 2024, to October 31, 2024, primarily due to an increase in unbilled revenue related to the new contracts we entered into during the six months ended October 31, 2024.

Deferred Revenue

The following table presents changes in deferred revenue associated with Immersion’s contract liabilities (in thousands):

		October 31, 2024			June 30, 2023
Deferred revenue beginning of the period	$	20,472		$	17,395
Additions to deferred revenue during the period		1,312			—
Reductions to deferred revenue for revenue recognized during the period		(11,566	)		(2,387	)
Deferred revenue balance end of the period	$	10,218		$	15,008

        Based on contracts signed and payments received as of October 31, 2024, we expect to recognize $10.2 million in revenue under our fixed fee license agreements, which are satisfied over time, including $7.4 million over one to three years and $2.8 million over more than three years.

Barnes & Noble Education

Disaggregated Revenue 

The following table disaggregated the revenue associated with our major products and service offerings (in thousands):

		One Month Ended July 31, 2024		Three Months Ended October 31, 2024		From June 10, 2024 to October 31, 2024
Course material sale	$	65,559	$	431,443	$	523,816
General merchandise sale		15,144		99,659		130,811
Services and other revenue		4,342		28,572		35,165
Total product and other revenue		85,045		559,674		689,792
Course material rental income		2,998		42,448		47,394
Total revenue	$	88,043	$	602,122	$	737,186

Deferred Revenue

The following table presents changes in deferred revenue associated with Barnes & Noble Education's contract liabilities (in thousands): 

		October 31, 2024
Deferred revenue as of the acquisition date	$	11,044
Additions to deferred revenue during the period		91,225
Reductions to deferred revenue for revenue recognized during the period		(61,392	)
Deferred revenue balance at the end of period	$	40,877