NeoMedia Technologies, Inc (NEOM)

[ss9173]

NMPR deferred revenue / income - from page 38 of the 10Q

During the fourth quarter of 2005 and first quarter of 2006, NeoMedia shipped and invoiced $757,000 of Micro Paint Repair products to Automart that has not yet been recognized in revenue as of June 30, 2006. If and when collectibility is reasonably assured, NeoMedia expects to recognize revenue for these shipments. The amount of $571,000 is included in deferred costs as of June 30, 2006.

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There appears to be 25% profit impact on these deferred sales - $571K costs vs. $757K deferred revenues = $186K deferred income.

SS9173