Thanks, very interesting write-up. I haven't found anything about significantly rising receivables, which worries me a bit. From the reports, I gather they recognize revenue upon contract signing. Excerpt from Q1'25:
"Initial milestone revenue from the Q1'25 laptop launches was recognized at contract signing in 2024."
This seems like a rather aggressive accounting approach. The level of receivables at the end of 2024 was almost equal to the full year's revenue. Perhaps these receivables aren't entirely unconditional? I think the market might be a bit concerned about this, and probably rightly so.
Thanks, under point 4 (Business Model) in my write-up you can find an example for a typical contract and how they recognize the revenues. At signing of the contract, ELABS receives a milestone payment for a minimum volume of smartphones / laptops. After this minimum volume is exceeded, they get additional revenue for a device above this number. These additional revenues are invoiced quarterly.
Wow
Is there an ADR for this ticker?
Unfortunately not
Thanks, very interesting write-up. I haven't found anything about significantly rising receivables, which worries me a bit. From the reports, I gather they recognize revenue upon contract signing. Excerpt from Q1'25:
"Initial milestone revenue from the Q1'25 laptop launches was recognized at contract signing in 2024."
This seems like a rather aggressive accounting approach. The level of receivables at the end of 2024 was almost equal to the full year's revenue. Perhaps these receivables aren't entirely unconditional? I think the market might be a bit concerned about this, and probably rightly so.
I would appreciate your thoughts on this matter.
Thanks, under point 4 (Business Model) in my write-up you can find an example for a typical contract and how they recognize the revenues. At signing of the contract, ELABS receives a milestone payment for a minimum volume of smartphones / laptops. After this minimum volume is exceeded, they get additional revenue for a device above this number. These additional revenues are invoiced quarterly.