During the 36 months ended December 31, 2013, MDS sold 158 Medbox machines,
which includes both base machines and the optional refrigerated add-on unit. During that time we also sold 53 POS Systems, which we no longer sell separately.
At December 31, 2013, we had approximately $10 million in contract commitments for our consulting services and Medbox machines.
Our contract commitments are revenue for products and services that are contingent on events for which there is substantial uncertainty at the date the contract or agreement was entered into. Future delivery on these commitments and recognition of additional consulting revenue is contingent on the clients who have contracted for them receiving the required state licenses. As a result, we will recognize these revenues as each milestone is achieved: the license is obtained; the dispensary site is determined and built out; and, the dispensing machine is delivered. Since our contract commitments are contingent on events with substantial uncertainty, it should not be looked at as an indicator for future earnings.
