This is an IOT deal, that is, the company is announcing the award of a significant up front NRE sum, to install a demonstration of the technology, as it applies to Securing the Infra-structure, of this large water distribution facility.
To sign a deal, an IOT deal, with immediate upfront NRE, immediate, in the current environment in China, with the majority of all economic interests, just trying to literally stay alive, is an amazing accomplishment. Bravo, hard to do in normal times, with C-19..Herculean.
This is an IOT deal, not a user/VPN monthly recurring model, it is a deal, just not the model that had been previously talked about the last year. They have an IOT deal on the Board. Now they have two models.
For the record, I know of no public company, in the technology business, that would ever release detailed information like this on an "aborning" technology installation, with emphasis on when money hits an account.
This smacks of a desperation to control a narrative, at the expense of accepted accounting standards and probity. Is this the norm for all deals from here on out, because you just set a precedent. If you are going to list when money hits an account, you beg the question of why you have not updated the money, if it exists, is going to be hitting the account, when it will hit accounts on the Consumer VPN model.
Why is the Share Price going up or down, you would have to ask the buyers and sellers on those transactions, the over burden of this share inventory is unusual at best.
Compliance professionals from other Countries, who have been briefed on this stock, it's available chart, and it's long story, almost too a group, expect that very soon, the company will make an announcement of a significant\unexpected revenue haul, that is the pattern to this event.
So stay frosty, and keep your eye on the Horizon, this is a Experienced Investor game only.
Play ball.
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