NOTE 12 – DEFERRED REVENUE

Deferred revenue as of March 31, 2026 and December 31, 2025 consisted of the following:

Changes in the balance of deferred revenue for the periods presented are as follows:

The transaction price from revenue transactions allocated to unsatisfied performance obligations represents contracted revenue that has not yet been recognized, which includes deferred revenue and non-cancelable contracts that will be invoiced and recognized as revenue in future periods ("backlog"). While deferred revenue is recorded on our balance sheet as a liability, backlog is not recorded in revenue, deferred revenue or elsewhere in our consolidated financial statements until we establish a contractual right to invoice, at which point it is recorded as revenue or deferred revenue as appropriate. As of March 31, 2026, the aggregate amount of the transaction price allocated to remaining performance obligations was $200,069 in deferred revenue and $463,581 in backlog. As of December 31, 2025, the aggregate amount of the transaction price allocated to remaining performance obligations was $497,113 in deferred revenue and $1,071,098 in backlog. 

We expect that the amount of backlog relative to the total value of our contracts will change from year to year due to several factors, including the amount invoiced early in the contract term, the timing and duration of customer agreements, varying invoicing cycles of agreements and changes in customer financial circumstances. Accordingly, we believe that fluctuations in backlog are not always a reliable indicator of future revenues, and we do not utilize backlog internally as a key management metric.