EM1 back ontop!, page-95

Your post doesn't make sense - sorry.
The consideration is $5M - if they dont pay the $5M then MIGGSTER goes back to EM1 for $1... so they will pay hence its $16.6 + 5 = ~22M
+ whatever debtors they collect - which was $1.4M in the HY21 accounts.

Great so you recognise that the "liability" is not $10M its $2.6M - good job referring to the latest set of financials that's a great start!

Your $5.4 is where you go wrong, you can't just divide one thing by another to come up with the answer LOL. MIGGSTER generated ~$20M in gross subscription revenue ($10.2M in FY21 and then $9.3M in HY21) and this has been reported as actual revenue over the two reporting periods due to accounting standards i.e. matched with timing. The COGS you mention are the costs payable under the agreement so not sure what you are trying to get at? The reason why there is bulk cash in the bank is because they reported $3.6M gross profit in FY21 and $2.7M GP in HY21 (adding back the R&D cost as they keep the R&D development) - so thats $6.3M profit on $20M revs overall or 31% GP - which is about what we should expect and then smartly got $8.9M in from oppies - so guess what - thats a $15M cash build. WOW it adds up!

SO in summary there is no big liability owing - you made that up.

I hope that helps you understand how the various numbers are arrived at and how financial statements work. Suggest you stick with the numbers in the financials rather than trying to make your own up!