Everything Blockchain Inc (EBZT)

[lesgetrich]

If you are trying to claim that the roughly $5 million increase in revenue proves that they're counting crypto appreciation as revenue you're wrong. Their services contract may well have included a final payment in Pulse coins once everything was completed. That wouldn't be appreciation but simply a completion bonus which incentivizes them to become validators. From their 7/28/21 PR...

Everything Blockchain Releases PulseChain Update from its Major Shareholder – Overwatch Partners, Inc.

The native token of PulseChain will be Pulse [Symbol: PLS] which can be bought and sold on both the Ethereum and PulseChain platforms after the sacrificial period. There is a 17-day sacrificial period, scheduled to conclude at midnight on August 2, 2021, at which time the PulseChain network will launch after a quiet period giving time for PulseChain to establish validators and distribute PLS tokens.

I can't imagine that they would have signed a multi month contract to help develop Pulse and not expected (by contract) to receive some tokens (either a set number of tokens or a dollar value in tokens) once they started distribution. If so, they would have probably invoiced them in July, thus putting the revenue into 3FQ21, in time to make the announcement yesterday. From their last 10-Q...

OBTX 2FQ21 10-Q

Note 4. Revenue

Under Topic 606, revenue is recognized when control of the promised goods or services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services.

* We determine revenue recognition through the following steps:

* Identification of the contract, or contracts, with a customer;

* Identification of the performance obligations in the contract;

* Determination of the transaction price

* Allocation of the transaction price to the performance obligations in the contract; and,

* Recognition of revenue when, or as, we satisfy a performance obligation.