that's funny Alea. No argument from me, billings for Q1 will include the entire $2.3M sale, while revenue for Q1 will only recognize ~1 month of the sale period covered. Maybe ~1/36th of $2.3M sale. I don't know but for readers' of just Q1's income statement, revenue and profit (loss) won't (iom) provide those readers with a clear understanding of Wave's actual operational performance for Q1 - or for the (maybe) 12 Qs that follow. And yes Q1 current assets ( cash &/or A/R {or a combination})will reflect that entire $2.3M. Balance Sheet will be improved. All good. Me, I'm just too lazy to deal w/ 2-3 years of gyrations w/ current liabilities showing the sale as a liability and revenue suggesting sales for which Wave had been previously paid. My tendency is to use billings as revenue, deduct 7% as COGS to get Gross profit and then deduct SG&A and R&D to get for me a "fairly close" representation of Wave's profit(loss). To that I'll add non cash expenses to determine proximity to "cash flow from operations." That's the figure I'm interested in. NOW, I know that's not the way it's supposed to be done. For me it gives me the information I want, accurate enough for me, and simply. And for me, it provides easier and clearer comparisons w/ the performance of prior and subsequent periods. It works for me, while using just published P&Ls does not. Nor does cash flow because of all the financings & warrant exercises. But that's just me, I a simple kinda guy - when simple suffices. Back to trying to catch up.
