Again, I disagree. Accounts receivable is first $500,000 based on what I'm reading in the accounting rules.
I did miss the deferred revenue line item for $1 million. That would be both $500,000 payments. One has been received, but can't be booked as revenue per the accounting rules (link I provided), thus accounts receivable equals $500,000. The other hasn't been received, but has been booked in deferred revenue.
Together, both are deferred revenue at the moment.
Take a look @ the Q2 10Q. There is None AR and there is NO revenue recognition in either Q2 or Q3 for any part of the $1M license fee.
It is registered as deferred revenue ($1M in Current Liability) because this is the total value of the goods or License Fees yet to be awarded to the Licensee.
The first half received is a receivable because they are waiting for the FEE to be paid in full to be recognized (Total Value).
And the $1M deferred revenue is accounted for in the Operating Cash Flow statement because it has not been recognized in the 9 month $5.596 NET LOSS, required for the cash flow to be correct.
The only money received so far is the first $500K. And Squires knows that everybody is waiting for the second half and news on the purchase agreement for the reactors.
This last thing is what I think is holding things up but I believe is a positive thing. Here is why I think so. The whole deal was originally accorded for a $20M project. Then after months of delay India decides they want it bigger. But the license fee remained the same. I would have expected the license fee to increase right? But the real money is in closing and selling more reactors which I assume will happen with the expansion of the footprint. So I think that news will come with a bigger deal than the 2 original reactors which will compensate for the delay and keeping the license fee with the original price. I'm bullish on this idea because of the clear bullish trend of the Indian partners who decided to increase investment by 250% from $20 to $70M.
These are just my own lines of thoughts... _____________________________________
I hope you can see what I'm saying. All revenue needs to go through recognition.
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