They did not "defer that same money into the next fiscal year". They reported revenue in 2015 as deferred revenue and included it as a liability not as an asset as required by the accounting standards based on the contract requirements.
From the December 2015 10-Q:
"During the six months ended December 31, 2015, the Company recorded $225,000 of deferred revenue. This represents full payment pursuant to the previously announced funded product development agreement with Nitto Denko Corporation (the “Agreement”). The Agreement does not require specific deliverables by the Company, however it does place certain restrictions on the Company’s ability to communicate with a limited number of specifically named businesses during the four month term of the agreement. Management does not believe that the restrictions have a material negative affect on the Company’s business prospects. All $225,000 of deferred revenue will be earned and recognized in the quarter ended March, 31, 2016."
They recorded the revenue as deferred in Dec 2015, because they had to satisfy the contractual requirements through Jan 22, 2016 and might not get to keep the revenue. But they kept quiet for 4 months and earned the $225,000 in January. They then recorded the revenue as earned income in the March 2016 10-Q and then included the earned revenue in the June 2016 10-K.
So the contract was sign in Oct 2015, the revenue was properly recognized as deferred revenue in Dec 2015, and properly recognized as earned revenue in Mar 2016. All of this occurred within the same fiscal year, since QMC's fiscal year began on July 1, 2015 and ended on June 30, 2016.
They did not "defer Income Fiscal Y/Y", because everything happened in the same fiscal year, different calendar years, but same fiscal year. No sandbagging, no contracts in the bottom drawer, nothing hidden from shareholders or the SEC, since it was all reported in the quarterly reports.
There was an 8-K reporting the contract, the not fully earned revenue was properly reported in the Dec 10-Q as deferred revenue, and then reported in the March 10-Q as earned income.
From the December 2015 10-Q:
"During the six months ended December 31, 2015, the Company recorded $225,000 of deferred revenue. This represents full payment pursuant to the previously announced funded product development agreement with Nitto Denko Corporation (the “Agreement”). The Agreement does not require specific deliverables by the Company, however it does place certain restrictions on the Company’s ability to communicate with a limited number of specifically named businesses during the four month term of the agreement. Management does not believe that the restrictions have a material negative affect on the Company’s business prospects. All $225,000 of deferred revenue will be earned and recognized in the quarter ended March, 31, 2016."
They recorded the revenue as deferred in Dec 2015, because they had to satisfy the contractual requirements through Jan 22, 2016 and might not get to keep the revenue. But they kept quiet for 4 months and earned the $225,000 in January. They then recorded the revenue as earned income in the March 2016 10-Q and then included the earned revenue in the June 2016 10-K.
So the contract was sign in Oct 2015, the revenue was properly recognized as deferred revenue in Dec 2015, and properly recognized as earned revenue in Mar 2016. All of this occurred within the same fiscal year, since QMC's fiscal year began on July 1, 2015 and ended on June 30, 2016.
They did not "defer Income Fiscal Y/Y", because everything happened in the same fiscal year, different calendar years, but same fiscal year. No sandbagging, no contracts in the bottom drawer, nothing hidden from shareholders or the SEC, since it was all reported in the quarterly reports.
There was an 8-K reporting the contract, the not fully earned revenue was properly reported in the Dec 10-Q as deferred revenue, and then reported in the March 10-Q as earned income.
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