DEFERRED REVENUE

9 Months Ended

Jun. 30, 2024

Revenue Recognition and Deferred Revenue [Abstract]

DEFERRED REVENUE

NOTE 4 – DEFERRED REVENUE

Deferred revenue is comprised of payments received from our clients and customers for products or services in advance of receiving the product or service. This primarily occurs for annual software and service contracts including Enclave. While software contracts can be initiated at any time of year, most of our annual agreements renew in our second fiscal quarter ending March 31.

A payment received from a client in advance of receiving the product or service will be deferred and increase the balance of deferred revenue. We recognize the revenue for the product or service when it is delivered to the client according to ASC Topic 606. The recognition of revenue for a product or service paid for in advance by our clients will decrease the balance of deferred revenue.

Deferred revenue was $647 thousand at June 30, 2024 and $280 thousand at September 30, 2023. The deferred revenue is expected to be earned within 12 months of the balance sheet date.

Changes in deferred revenue for the nine months ended June 30, 2024 were as follows:

Deferred Revenue
(In thousands)
Balance at September 30, 2023	$	280
Deferral of revenue		1,100
Recognition of revenue		(733	)
Balance at June 30, 2024	$	647