Revenue Recognition and Deferred Revenue

3 Months Ended

Jun. 30, 2011

Revenue Recognition and Deferred Revenue

Deferred Revenue Disclosure [Text Block]

NOTE 8

DEFERRED REVENUE

Deposits from customers are not recognized as revenues, but as liabilities, until the following conditions are met: revenues are realized when cash or claims to cash (receivable) are received in exchange for goods or services or when assets received in such exchange are readily convertible to cash or claim to cash or when such goods/services are transferred. When such income item is earned, the related revenue item is recognized, and the deferred revenue is reduced. To the extent revenues are generated from the Company’s licensing support services, the Company recognizes such revenues when services are completed and billed.

The Company has received deposits from various of its clients that have been recorded as deferred revenue in the amount of $216,704 and $300,396 as of the periods ended June 30, 2011 and December 31, 2010, respectively.

- Definition

The entire disclosure for deferred revenues at the end of the reporting period, and description and amounts of significant changes that occurred during the reporting period. Deferred revenue is a liability as of the balance sheet date related to a revenue producing activity for which revenue has not yet been recognized. Generally, an entity records deferred revenue when it receives consideration from a customer before achieving certain criteria that must be met for revenue to be recognized in conformity with GAAP.

+ References+ Details