Ann: Appendix 4E & 2023 Annual Report, page-88

It will be interesting to watch deferred revenue on balance sheet as a proportion of revenue, over upcoming announcements.

That may paint a reasonable picture as to future, near-term revenue growth. My understanding is that only license-based income streams are paid upfront, and therefore only they are recorded as deferred revenue.

If my understanding is correct, the $5.2m in deferred revenue (a $2.65m increase on last year's annual report) indicates there's actually a lot more going on than what the business is explicitly saying, and even though it's not necessarily ARR, some of these license-based contracts may continue to roll-over (given low customer churn) and in effect actually become more akin to ARR.

Crucially, if my understanding is correct - that this is purely license-based - then the quality of revenues is materially improving. Total revenue for last FY was $6.4m (from which license revs was $3.2m).

Assuming my understanding is correct, the business will for FY24 receive 81.25% of FY23's total revenue, via license-based revenues only.

How the revenue distribution looks going forward will be important, but this is painting a picture consistent with Daniel Lai's comments in various presentations about the existing service-based contracts likely to cause a significant pull-through, or slingshot of license-based revenue.

The firm has been relatively silent - much to my (and no doubt many shareholders') chagrin - but the numbers are certainly providing support for the verbal context Daniel and Kurt have provided in investor presentations.