mCloud Technologies Corp (MCLD)

[Tickbomb]

Asset initialization is 20% of Total Contract Value. It's not real money, but an accounting treatment of revenue. It's just how they recognize revenue. So for a $10,000/36 month contract they would recognize:

month 1: $2000
month 2: $228
month 3: $228
...
month 36: $228

The cash flows look however they are negotiated. So if there is an upfront payment to "pull forward" 20% of TCV in month one, their cash flows would look similar. But if not, the cash flows would look like MRR:

month 1: $277
month 2: $277
month 3: $277
...
month 36: $277

So asset care initialization isn't in addition to the MRR.