They are using accrual basis of accounting - ie. accounting for revenue as clients used their software, but have not paid yet.
However it does seem odd that cash receipts is that low because the previous quarter, the cash received was $170k, but accrual revenue was $250k, which means $80k from the previous September quarter should have been received in the December quarter.
This would suggest for the December quarter, they received $80k from the September quarter and new cash receipt of $80k for the December quarter.
So its safe to conclude that, for the Revenue reported of $320k (accruals), only $80k cash was received.
That's not enough to cover salaries for the quarter.
