Replies to post #52396 on Quantum Materials Corp. (fka QTMM)

[Jamis1]

Cadmium-free quantum dot and nanomaterial developer Nanoco Group announced an update on the timing of revenue recognition of July licence agreements on Friday.

The London-listed firm said upfront licence fees associated with the agreements are to be recognised over the period of Nanoco's contractual support.

“It is expected that £0.5m will be released to revenue in the year ending 31 July 2017 and £0.7m will be released over the following six years ending 31 July 2023,” the board said in a statement.

“Grant income will be presented as ‘other income’ in the current year.”
The group's accounts for the year ended 31 July 2016, which remain unaudited, are expected to include revenue of £0.4m, other income of £0.3m and £1.2m in deferred revenue on the group's balance sheet, giving a total of £1.9m.

Nanoco’s cash position is unaffected by these changes in accounting treatment, the board claimed.

At 0922 BST, shares in Nanoco were down 7.87% at 58.5p

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I noted that their agreement with Merck is only providing $500,000 in revenue through July 2017. That's not quite double what Nitto Denko paid QMC for development. This goes to show that the big dogs (Nitto Denko, Merck, Dow, etc.) are the ones in control and dictating the price until commercial production is reached. In my opinion, this proves that QMC's $225,000 from Nitto Denko carries just as much weight as the agreement Nanoco has with Merck.

It also continues to show that the industry is still in its infancy.

[dp60]

I wonder, Jamis, if this is Nanoco spreading income out during lean "ramp-up" period or licensee(s) pushing out payments while actual production catches us to what might have been projected. Perhaps a small sign that there is still time, and room to maneuver before these early relationships in this young industry really swing into gear.