It's creative bullshit. Look at the bolded (my emphasis) in their Revenue Recognition note from their 2021 audited financials. No revenue is recognized on the Income Statement. It's kind of like saying, maybe, maybe not. Definitely not GAAP. I wouldn't sign that audit report.
Revenue Recognition
The Company recognizes revenue when persuasive evidence of an arrangement exists, control has been transferred, the fee is fixed or determinable, and collectability is reasonably assured. In instances where final acceptance of the product Is specified by the customer, revenue is deferred until all
acceptance criteria have been met. The Company’s primary source of revenue is the monthly licensing subscription fee.
The Company applies the following
five steps in order to determine the appropriate amount of revenue to be recognized as it fulfills its obligations under each of its arrangements:
?
Identify the contract with a customer,
?
Identify the performance obligations in the contract,
?
Determine the transaction price,
?
Allocate the transaction price to performance obligations
in the contract, and
?
Recognize revenue as the performance obligation is satisfied.
Deferred Revenue
The company recognizes deferred revenue to account for all revenue streams of the Company that doesn’t meet the revenue recognition
criteria.
Damn Right I've Got the Blues.
