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MMX might have incorrectly recognized revenue

Company might have improperly recognized $1.0 million.

Picture of Toby Hall, CEO of domain company MMX
MMX CEO Toby Hall speaking at a domain name event. MMX’s board is investigating if it improperly recognized revenue from a contract.

New top level domain name company MMX announced that it might have incorrectly recognized revenue from a contract.

According to the announcement, the MMX Board is commencing a formal investigation to determine whether the revenue was correctly recognized. The investigation is related to a contract that was entered into last year “and relates to whether all requirements for the recognition of revenue had been met prior to 31 December 2019 and 30 June 2020 or whether such amounts should have been classified as a refundable deposit against future sales or deferred revenue at those dates.”

The company has received $1.125 million in cash associated with the contract and recognized $938,000 of it last year and $25,000 in the first half of this year.

The company’s maximum cash impact is $1.0 million if it turns out that amounts received under the contract were to be refundable, assuming no further revenue was generated. The other question is if the company recognized the revenue too early, which would force it to restate earnings from last year.

The company has $7.3 million in cash on hand. It reported a total of $18.9 revenue last year.

Shares in MMX (LON: MMX) are down 15% to 5.00 pence.

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    • Matt says

      I have worked with the folks at MMX and your comment is misplaced.

      As the article states, the board made the announcement and is investigating.

      If a company is doing the right thing, investigating and correcting, why make the comments you did? You must really be terrified of new domains to increase your campaign against them!

      • Snoopy says

        The stock hit another low on Friday, it is a fact and there is no way that comment can be “misplaced”.

        Good luck to you if you have faith in that company.

        • Matt says

          Where does your vendetta against them come from?

          Have you ever personally been affected by them or what exactly do you think is immoral about this case and their announcement?

          You really do seem to hold grudges against certain companies and the only connection I can tell is that they each company happens to be a new TLD registry. Interesting coincidence!?

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