Revenue Recognition	9 Months Ended
Sep. 30, 2014
Notes
Revenue Recognition	Revenue Recognition: The Company recognizes revenues in accordance with authoritative guidance when services have been rendered, the sales price is determinable and collectability is reasonably assured. The Company has launched DriveAlert, one of the Company’s products, with certain dealerships during the second quarter of 2014. Revenue from DriveAlert, consists of fees charged for the use of car device with downloadable software. The terms with the end-users range between one to seven years and are payable upfront to the dealerships, which then remits the proceeds, net of their commissions to the Company. The Company’s sold hardware contains software components that are essential to the overall functionality of the products. The Company recognizes revenue recognition to remove tangible products containing software components and non-software components that function together to deliver the product’s essential functionality from the scope of industry-specific software revenue recognition guidance. For multiple element arrangements that include software and non-software related elements, the Company allocates revenue to each software and non-software element as a group based upon the relative selling price of each in accordance with the selling price hierarchy, which includes VSOE if available, third-party evidence (“TPE”), if VSOE is not available, and estimated selling price, if VSOE or TPE are not available. Revenue allocated to each element is then recognized when the basic revenue recognition criteria are met for each element. In unique circumstances, we are unable to establish VSOE for all deliverables in a multiple-element arrangement. This is due to an infrequent requested item from a customer. When VSOE cannot be established, we attempt to establish a selling price based on TPE, which is primarily based on competitor prices for similar deliverables. TPE and ESP are rarely used and mostly on insignificant items. Revenue from online Internet sales is recognized upon the settlement of credit card charges, typically within three days of the sale.

Revenue Recognition

9 Months Ended

Sep. 30, 2014

Revenue Recognition:

The Company recognizes revenues in accordance with authoritative guidance when services have been rendered, the sales price is determinable and collectability is reasonably assured.

The Company has launched DriveAlert, one of the Company’s products, with certain dealerships during the second quarter of 2014. Revenue from DriveAlert, consists of fees charged for the use of car device with downloadable software. The terms with the end-users range between one to seven years and are payable upfront to the dealerships, which then remits the proceeds, net of their commissions to the Company.

The Company’s sold hardware contains software components that are essential to the overall functionality of the products. The Company recognizes revenue recognition to remove tangible products containing software components and non-software components that function together to deliver the product’s essential functionality from the scope of industry-specific software revenue recognition guidance.

For multiple element arrangements that include software and non-software related elements, the Company allocates revenue to each software and non-software element as a group based upon the relative selling price of each in accordance with the selling price hierarchy, which includes VSOE if available, third-party evidence (“TPE”), if VSOE is not available, and estimated selling price, if VSOE or TPE are not available. Revenue allocated to each element is then recognized when the basic revenue recognition criteria are met for each element.

In unique circumstances, we are unable to establish VSOE for all deliverables in a multiple-element arrangement. This is due to an infrequent requested item from a customer. When VSOE cannot be established, we attempt to establish a selling price based on TPE, which is primarily based on competitor prices for similar deliverables. TPE and ESP are rarely used and mostly on insignificant items.

Revenue from online Internet sales is recognized upon the settlement of credit card charges, typically within three days of the sale.

- Definition

Disclosure of accounting policy for revenue recognition. If the entity has different policies for different types of revenue transactions, the policy for each material type of transaction is generally disclosed. If a sales transaction has multiple element arrangements (for example, delivery of multiple products, services or the rights to use assets) the disclosure may indicate the accounting policy for each unit of accounting as well as how units of accounting are determined and valued. The disclosure may encompass important judgment as to appropriateness of principles related to recognition of revenue. The disclosure also may indicate the entity's treatment of any unearned or deferred revenue that arises from the transaction.

+ References+ Details

ProText Mobility, Inc. 10-Q/A