Quantum Materials Corp. (fka QTMM)

[Kurt_Banoffee]

This is REALLY simple.

They booked all $1M of the up front fee as deferred revenue and the opposite side of the transaction was $1M increase in accounts receivable. Subsequently, they received $500K cash - the first half of the fee that they told us they received in March. This increased cash by $500K and lowered AR to $500K. It's all there; nothing is hidden.

Now that I’m looking closer, you wouldn’t book the same amount in deferred revenue and accounts receivable, not that I’m aware. That would be double counting.

Deferred Revenue is a Liability. Accounts Receivable is an Asset. That's not double counting because they are on opposite sides of the balance sheets. It's a debit to the asset and a credit to the liability. It's exactly how you book it.