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3. REVENUE RECOGNITION
6 Months Ended
Nov. 30, 2019
Revenue from Contract with Customer [Abstract]  
3. REVENUE RECOGNITION

Monthly Management Fee

 

The Company generates monthly management revenues from fees for labor and benefit costs. The Company recognizes revenue for these services in the month the labor and benefits are received by the customer. Monthly management fee revenues of $1,899,223 and $3,846,905 were recognized for the three months and six months ended November 30, 2019, respectively.

 

Quarterly Management Fee

 

The Company generates management fee revenue each quarter. The Company recognizes revenue over the applicable quarter on a straight-line basis. The management fee is billed quarterly in advance. As a result, we have recorded deferred revenue for services that have not been provided of $45,833 as of November 30, 2019. Quarterly management fees recognized for the three and six months ended November 30, 2019 were $137,500 and $275,000, respectively.