VENDOR INCENTIVE

12 Months Ended

Mar. 31, 2016

8. VENDOR INCENTIVE

In December 2013, the Company’s current transfer agent paid off the outstanding balance of $5,717 owed to the former transfer agent. This has been recorded as a deferred vendor incentive. It has been amortized on a straight line basis over the contract term of 5 years such that each year’s portion of the incentive will be offset against transfer agent fees in the statement of operations.


For the Year Ended	Offset	Balance
March 31, 2014	-	$ 5,335
March 31, 2015	$ 1,143	$ 4,192
March 31, 2016	$ 1,143	$ 3,049

Subsequent to the March 31, 2016 year end, the Company changed transfer agents prior to the end of the 5 year contract term. For early termination, the Company was required to pay back the original amount of the vendor incentive which was added to the termination fees charged by the outgoing transfer agent.

- 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

NEXGEN APPLIED SOLUTIONS INC 10-K