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As Ron mentioned, during the quarter, we completed the acquisition of Smart Card Software, which encompasses two business units; Bell ID and Ecebs. Since both of these are software customization companies, upon acquisition not all of their existing revenue is reflected in our consolidated revenue number. Under U.S. accounting rules, we have to determine, which signed contracts require minimal or no further effort. For these contracts, we can calculate a fair value of the future cash flows and record them as an intangible asset on our balance sheet as favorable contracts.
When the customers pay us, we are able to recognize the cash, but no revenue and reduce the intangible asset by the corresponding amount of cash received. As we completed our purchase accounting, we have recorded approximately $8 million as favorable contracts, which implies that we will not be recognizing this $8 million as revenue, but still collect and recognize the cash.>>