Revenue Recognition

The Company recognizes revenue in accordance with Accounting Standards Codification (“ASC”) 606, “Revenue from Contracts with Customers”. ASC 606 adoption is on February 1, 2018. The core principle of ASC 606 is that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.

GLIDELOGIC CORP. recognizes revenue in accordance with this core principle by applying the following steps:

Step 1: Identifying the contract(s) with the customer.

Step 2: Identifying the performance obligation to satisfy the contract.

Step 3: Determining the transaction price.

Step 4: Allocate the transaction price to the performance obligations in the contract.

Step 5: Revenue recognition.

The Company's revenues are bifurcated into two categories: software and services including commission or rebates derived from providing such services. Revenues from software are recognized at a point-in-time as ownership is transferred to the customer at a distinct point in time, in accordance with the terms of the contract. For services, revenue is recognized over time as the services are rendered and milestones are achieved, pursuant to the terms specified in the service agreement. Revenue related to commissions and rebates is recognized after the end of the reporting quarter during which the related services are provided. The determination of commission and rebate amounts is contingent upon the aggregate transaction data for the completed quarter, such as the total amount spent by each client. As a result, these amounts are typically calculated and finalized in the subsequent quarter, or later, depending on the timing of data reconciliation and processing by the platform and its primary agency.

The Company shall not be liable for any failure to perform its obligations, whether related to software or services, if such failure is due to circumstances beyond its reasonable control. Any liability of the Company shall be limited to the total of all amounts paid by the customer for software and/or services under the contract.

Payment Terms: The Company plans to collect payment from customers prior to transferring ownership of the software and may require deposits from customers at the time an order is placed. When deposits are collected prior to transferring ownership of the software, the Company recognizes deferred revenue until the transfer is made. Similarly, for services, the Company may require an upfront retainer or periodic payments, as outlined in the service agreement. Any prepaid amounts for services will be recognized as deferred revenue until the services are rendered. The Company plans to collect payment from customers prior to transferring ownership of the software and may require deposits from customers at the time an order is placed. When deposits are collected prior to transferring ownership of the software, the Company recognizes deferred revenue until the transfer is made. Similarly, for services, the Company may require an upfront retainer or periodic payments, as outlined in the service agreement. Any prepaid amounts for services will be recognized as deferred revenue until the services are rendered. For commission and rebate revenue, payments are typically received after the commission and rebate amounts are determined. Depending on the speed of processing by the paying party, the Company generally receives these payments in the quarter following the quarter in which the related services were provided.

As for Nonmonetary Exchange Contracts, the Company accepts barter contracts and recognizes any revenue originating from such contracts, whether related to software or services, if a barter agreement is made between both parties.