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Re: chiefs1 post# 8858

Thursday, 08/20/2015 7:12:14 AM

Thursday, August 20, 2015 7:12:14 AM

Post# of 15432
The $1M cannot show as earnings until it is "earned", if DDCC's obligation to fulfill the contract has not been met they cannot recognize revenue. This is why it is sitting as a liability on the balance sheet as deferred revenue. Overtime, as the contract is fulfilled the revenue will become earned and show up in the P&L as revenue.

On a second note, they are cash flow positive and show a massive increase from prior year. All in all this is going in the right direction and being that they booked the deferred, you will see $1M in revenue's earned via that contract.
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