Ann: Company Update, page-7

I'm not an accountant and may have some of the finer details wrong, but at large the old way involved realising revenue on a pro-rata time (i.e. linear) scale throughout the subscription, whilst now it is realised on a milestone basis (i.e. non-linear), reflecting that effort/value of a contract isn't always seen on a linear basis.

Rough sketch to demonstrate. Vertical axis is "earned" revenue. Horizontal axis is time.




The examples JCS gives of the milestones are;

- implementation
- providing technical support
- providing TEMS solutions