Nanoco shares fall it defers licence fee revenue

7th Oct 2016 08:26

(ShareCast News) - Cadmium-free quantum dot and nanomaterial developer Nanoco Group announced an update on the timing of revenue recognition of July licence agreements on Friday.The London-listed firm said upfront licence fees associated with the agreements are to be recognised over the period of Nanoco's contractual support."It is expected that £0.5m will be released to revenue in the year ending 31 July 2017 and £0.7m will be released over the following six years ending 31 July 2023," the board said in a statement."Grant income will be presented as 'other income' in the current year."The group's accounts for the year ended 31 July 2016, which remain unaudited, are expected to include revenue of £0.4m, other income of £0.3m and £1.2m in deferred revenue on the group's balance sheet, giving a total of £1.9m.Nanoco's cash position is unaffected by these changes in accounting treatment, the board claimed.At 0922 BST, shares in Nanoco were down 7.87% at 58.5p.