NET SALES

12 Months Ended

Jun. 30, 2023

Net Sales

NET SALES

4. NET SALES

The following table presents the disaggregation of net sales by revenue recognition model (in thousands):

	Year ended June 30,
	2023		2022
Net Sales:
Over-time revenue recognition	$	2,695	$	1,014
Point-in-time revenue recognition		43,392		41,027
Total net sales	$	46,087	$	42,041

The timing of revenue recognition, billings, and cash collections results in billed accounts receivables, unbilled receivables (presented as deferred costs on our consolidated balance sheets) and customer advances and deposits (presented as deferred revenue on our consolidated balance sheets), where applicable. Amounts are generally billed as work progresses in accordance with agreed upon milestones. The over-time revenue recognition model consists of non-recurring engineering (“NRE”) and prototype services and typically relates to NRE services related to the evaluation, design or customization of a medical device and is typically recognized over time utilizing an input measure of progress based on costs incurred compared to the estimated total costs upon completion. During the fiscal years ended June 30, 2023 and 2022, we recorded $1.0 million and $98,000, respectively, of revenue that had been included in deferred revenue in the prior year. The revenue recognized from the contract liabilities consisted of satisfying our performance obligations during the normal course of business.

The following tables summarize our contract assets and liability balances (in thousands):

	June 30,
	2023			2022
Contract assets at beginning of year	$	710		$	193
Expenses incurred during the year		1,545			1,319
Amounts reclassified to cost of sales		(1,710	)		(774	)
Amounts allocated to discounts for standalone selling price		(51	)		(28	)
Contract assets at end of year	$	494		$	710

	June 30,
	2023			2022
Contract liabilities at beginning of year	$	1,013		$	150
Payments received from customers		781			1,482
Amounts reclassified to revenue		(1,794	)		(619	)
Contract liabilities at end of year	$	—		$	1,013