Ann: Update on USA Operations, page-83

I am not an accountant but I have been involved in businesses where customers are on 12 and 24 month contracts and the revenue is deferred across the life of the contract. The fact they have received upfront payments and are amortising them across the contract life is, IMO and from what I have seen, correct. Cash is King and upfront payments will allow them to fund additional growth which in turn will yield greater revenues. If they play this right - its could be a great business IMO.