Australia's largest stock trading and investment forum Australia's #1 stock forum

LVT

0.00%

0.6¢ livetiles limited

something is a foot, page-58

First 58 Last

Share
Profile

Follow
Indytrader1988

6,091 Posts.

913

11/10/21

07:03

Post #: 56698322
Share

Originally posted by badkerning: ↑

They have $13.3 in unearned revenue which is currently classified as a liability due to the way they recognised revenue. If this revenue was related to upfront payments for new services, then once the services go live for the customers, these will no longer be classified as liabilities (as performance obligations will have been met).

This unearned revenue could also be associated with upfront payments for a full year of continued service from exisiting customers, so the liability will be reduced with each passing month — as the revenue is amortised across a full year.

The only reason LVT would potentially have to repay this unearned revenue is if they couldn’t fulfil their service and performance obligations. It’s very unlikely they’d need to repay this, so you can effectively remove this from their short term liabilities.

They also have $1m in government grant income listed as a liability. It’s carried as a liability until whatever conditions of them receiving the grant have been met. If it’s R&D related — then they probably just need to prove that they’ve spent a certain amount in R&D at the end of the FY. At that point, it’ll no longer be a liability.

Expand

Thanks for clarifying that. I did notice they mentioned in their 4E that they had to take out 2.8m for exactly these reasons u mentioned where they had included potential upfront payments in their ARR but then the clients left with the sales team so that amount had to be taken out of ARR.
Could tthese amounts not also be classified as assets?

LVT Price at posting: 12.5¢ Sentiment: Buy Disclosure: Held
Upvote

0 Great analysis

Reply

Top Stories

NTI

Neurotech knocked back by FDA as agency declares target condition not rare enough for special status

SLS

Solstice Minerals to ramp up drilling campaign at Yarri Gold Project

WCN

White Cliff jumps 24% on 'bonanza grade' copper rock chips at Rae project, Canada

Week 40 Wrap: China's nonsensical stimmy hype wanes (shocking!); HotCopper's picks; oil & inflation

BCI

BCI reaches close of funding facility for salt-first part of Mardie project

RCE

Recce eyes Indonesia for novel anti-infective as Indo-Aus ties grow stronger

BUX

Buxton projects new graphite province discovery at WA Narryer play

COD

Coda Minerals (ASX:COD) enters rights issue to further exploration in South Australia

CKA

Cokal upgrades infrastructure for BBM ramp-up in Indonesia

ACW

Actinogen Medical ramps up Alzheimer’s treatment trials, targeting fast-track global approvals

There are more pages in this discussion • 43 more messages in this thread...

First 58 Last

Add LVT (ASX) to my watchlist

something is a foot, page-58

Top Stories

Neurotech knocked back by FDA as agency declares target condition not rare enough for special status

Solstice Minerals to ramp up drilling campaign at Yarri Gold Project

White Cliff jumps 24% on 'bonanza grade' copper rock chips at Rae project, Canada

Week 40 Wrap: China's nonsensical stimmy hype wanes (shocking!); HotCopper's picks; oil & inflation

BCI reaches close of funding facility for salt-first part of Mardie project

Recce eyes Indonesia for novel anti-infective as Indo-Aus ties grow stronger

Buxton projects new graphite province discovery at WA Narryer play

Coda Minerals (ASX:COD) enters rights issue to further exploration in South Australia

Cokal upgrades infrastructure for BBM ramp-up in Indonesia

Actinogen Medical ramps up Alzheimer’s treatment trials, targeting fast-track global approvals

Featured News