Replies to post #364103 on Digital Brand Media and Marketing Group Inc (DBMM)

[Krombacher]

The way I read it, Linda’s saying there’s a $1M contract already in hand, but revenue can’t be recognized until DBMM performs on that contract.

That doesn’t mean the company won’t hit revenue recognition in FY2025 — just that under GAAP, you don’t get to count it until the job’s done (or sufficiently progressed if using percentage-of-completion). And completion isn’t always easy to time — some clients are cooperative, others may ask for revisions or delay final sign-off.

So what she’s describing is contractual obligation-based revenue, not yet recognized revenue. Big difference — and frankly, the kind of language you’d want a real company to use if they’re playing by the book.

– Krombacher