RE:RE:RE:RE:RE:RE:RE:Jason Donville Moves the StockMore detail on how participation survey accounting works:
When Pulse and a customer agree to perform a participation survey, Pulse will contribute say $3 MM while their client will put up $7 MM in a typical funding arrangement. The entire $10 MM is recorded as CAPEX under the investing cash flow section and the $7.5MM from the client is recognized as revenue on the income statement under “participation survey revenues.” The full cost of the participation is then added to the seismic library asset on the balance sheet and amortized as follows: 50% in the first year and the remainder ratably over 7 years.
Quoted from this write-up:
https://moatology.com/2013/11/05/pulse-seismic-a-canadian-microcap-with-moodys-like-economics/