NET SALES

9 Months Ended

Mar. 31, 2024

Revenue from Contract with Customer [Abstract]

NET SALES

NOTE 3. NET SALES

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

	Three Months Ended March 31,				Nine Months Ended March 31,
	2024		2023		2024		2023
Net Sales:
Over-time revenue recognition	$	234	$	970	$	762	$	2,361
Point-in-time revenue recognition		14,059		12,109		38,057		33,087
Total net sales	$	14,293	$	13,079	$	38,819	$	35,448

The timing of revenue recognition, billings, and cash collections results in billed accounts receivables, unbilled receivables (presented as deferred costs on our condensed consolidated balance sheets) and customer advances and deposits (presented as deferred revenue on our condensed 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 three and nine months ended March 31, 2024, we did not record any revenue that had been included in deferred revenue in the prior year. During the three and nine months ended March 31, 2023, we recorded $405,000 and $956,000, 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. Our entire deferred revenue balance of $35,000 at March 31, 2024, is currently expected to be recognized in the next 12-month period.

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

	As of and for the Three Months Ended March 31,						As of and for the Nine Months Ended March 31,
	2024			2023			2024			2023
Contract assets beginning balance	$	412		$	877		$	494		$	710
Expenses incurred during the year		106			362			376			1,108
Amounts reclassified to cost of sales		(179	)		(935	)		(505	)		(1,497	)
Amounts allocated to discounts for standalone selling price		(8	)		(25	)		(34	)		(42	)
Contract assets ending balance	$	331		$	279		$	331		$	279

	As of and for the Three Months Ended March 31,						As of and for the Nine Months Ended March 31,
	2024			2023			2024			2023
Contract liabilities beginning balance	$	—		$	851		$	—		$	1,013
Payments received from customers		225			41			267			741
Amounts reclassified to revenue		(190	)		(835	)		(232	)		(1,697	)
Contract liabilities ending balance	$	35		$	57		$	35		$	57