Quarterly Report for Quarter Ending June 30, 2024 (Form 10-Q)

Management's Discussion and Analysis of Financial Condition and Results of Operations

This quarter report on Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). All statements contained in this quarter report on Form 10-Q other than statements of historical fact, including statements regarding our future operating results and financial position, our business strategy and plans and our objectives for future operations, are forward-looking statements. The words "believe," "may," "will," "estimate," "continue," "anticipate," "predict," "project," "potential," "seek," "intend," "could," "would," "should," "expect," "plan" and similar expressions are intended to identify forward-looking statements.

Forward-looking statements in this quarter report on Form 10-Q include, but are not limited to, our plans and expectations regarding future financial results, including our expectations regarding: our ability to secure buyers for BESS projects in our portfolio; statements about our supply chain; operating results; the sufficiency of our cash and our liquidity and our ability to obtain financing; projected costs; development of new products and improvements to our existing products; our development costs; our agreements with our development partners; legislative actions and regulatory and environmental compliance; competitive position; management's plans and objectives for future operations; our ability to comply with loan terms and repay loan obligations as they come due; trends in selling prices; the success of our customer financing arrangements and ability to secure financiers; capital expenditures; warranty matters; outcomes of litigation; our exposure to foreign exchange, interest and credit risk; general business and economic conditions in our markets; industry trends; the impact of changes in government incentives; risks related to cybersecurity breaches, privacy and data security; the likelihood of any impairment of project assets, long-lived assets and investments; trends in revenue, cost of revenue and gross profit (loss); trends in operating expenses including sales and marketing expense and general and administrative expense; our ability to expand our business, including our ability to secure new customers; our ability to increase efficiency of our products and services; our ability to market our products successfully; our business strategy and plans and our objectives for future operations; and the impact of recently adopted accounting pronouncements.

You should not rely upon forward-looking statements as predictions of future events. We have based the forward-looking statements contained in this quarter report on Form 10-Q primarily on our current expectations and projections about future events and trends that we believe may affect our business, financial condition, operating results and prospects. The outcome of the events described in these forward-looking statements is subject to risks, uncertainties and other factors including those discussed in Part I, Item 1A, Risk Factors and elsewhere in this quarter report on Form 10-Q. Moreover, we operate in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time to time, and it is not possible for us to predict all risks and uncertainties or the extent to which any factor or combination of factors may cause actual results to differ materially from those contained in any forward-looking statements we may make in this quarter report on Form 10-Q. We cannot assure you that the results, events and circumstances reflected in the forward-looking statements will be achieved or occur. Actual results, events or circumstances could differ materially and adversely from those described or anticipated in the forward-looking statements.

The forward-looking statements made in this quarter report on Form 10-Q relate only to events as of the date on which the statements are made. We undertake no obligation to update any forward-looking statements made in this quarter report on Form 10-Q to reflect events or circumstances after the date of this quarter report on Form 10-Q or to reflect new information or the occurrence of unanticipated events, except as required by law. We may not actually achieve the plans, intentions or expectations disclosed in our forward-looking statements and you should not place undue reliance on our forward-looking statements.

Our actual results and timing of selected events may differ materially from those anticipated in these forward-looking statements as a result of many factors including those discussed under Part I, Item 1A, Risk Factors and elsewhere in this quarter report on Form 10-Q.

Our financial statements are stated in United States dollars (US$) and are prepared in accordance with United States Generally Accepted Accounting Principles.

In this quarterly report, unless otherwise specified, all dollar amounts are expressed in United States dollars and all references to "common shares" refer to the common shares in our capital stock.

As used in this quarterly report and unless otherwise indicated, the terms "we", "us", "our", "Pacific Green", the "Company", and "our company" mean Pacific Green Technologies Inc., a Delaware corporation, and our wholly owned subsidiaries unless otherwise indicated.

Key Operating Metrics

Disclosures on Key Operating Metrics are taken from the Annual Report on Form 10-K for the year ended March 31, 2024 and not updated for the quarter-ended June 30, 2024. Further update will be disclosed as part of the Annual Report on Form 10-K for the fiscal year ended March 31, 2025.

BESS project pipeline

BESS project pipeline represents our uncontracted, potential proceeds from sale of BESS projects, which have a reasonable likelihood of contract execution within 48 months. Pipeline is an internal management metric that we construct from market information reported by our business development team. Pipeline is monitored by management to understand the anticipated growth of our Company and our estimated future proceeds from customer contracts for our BESS. Our pipeline is further divided into Early Stage and Mid/Late Stage projects, with Mid-Late Stage projects being all projects with an anticipated sale within 24 months, and Early Stage projects being all other projects that the where the Company has a clear intent to proceed with development activity beyond initial evaluation. Prospects under initial evaluation are excluded from the pipeline.

We cannot guarantee that our pipeline will result in actual sale proceeds in the timeframe indicated, or at all. Pipeline may not generate margins equal to our historical operating results. Our expectations of project profitability may change over time as circumstances on the project and our understanding of the project evolve. External market factors and economic or other factors beyond our control may affect our development cost, or our customers' interest in buying projects from the pipeline. If our pipeline fails to result in proceeds as anticipated or in a timely manner, we could experience a reduction in profitability and liquidity.

The following table presents our total BESS project pipeline of projects at the development stage:

				June 30, 2024				March 31, 2024				Change
				MW				MW				MW				%
BESS project development pipeline:
Australia		Early stage			2,250				1,250				1,000
		Mid-late stage			250				250				-
Europe		Early stage			550				500				50
		Mid-late stage			-				-				-
Total					3,050				2,000				1,050				53	%

Additions to the pipeline in fiscal year 2024 include:

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Portland Energy Park, a 1 GW/ 1.5 GWh new grid-scale battery project to be developed in Victoria, Australia and is planned to be the largest Battery Energy Storage System in Australia. The energy park will deliver a major increase in energy storage capacity in Victoria, strengthening the region's energy stability and supporting its net-zero transition. Once operational, the energy park will provide critical support for existing and proposed renewable energy projects within the Southwest Renewable Energy Zone (as designated by the Australian Energy Market Operator and the Victorian Government), and heavy electricity users and energy generation facilities in this area.

●

Limestone Coast Energy Park regional South East Australia, comprising two grid-scale co-located battery assets - Limestone Coast North and Limestone Coast West, combined 500 MW / 1.0 GWh. The projects will enhance the state's energy stability and supporting its transition to net-zero emissions. Strategically located near the 275kV South East Substation, the facilities will aid stabilizing the grid and lowering energy costs. The parks will store up to 60% of South Australia's residential solar output, preventing an average of 80,000 tonnes of carbon dioxide emissions annually. On February 20, 2025, the Company announced it has signed binding documentation for the sale of 100% of the shares in its Limestone Coast North Energy Park, a 250 MW / 500 MWh battery energy storage development in the Limestone Coast region of South Australia, which expects to begin commercial operations in 2027, to Intera Renewables (Intera). The sale completed on March 19, 2025.

●

On September 27, 2023, the Company acquired 51% interest in five development BESS projects in Italy from Sphera Energy S.r.l ("Sphera"), total 500 MW. These five projects are held within Sphera Australe S.r.l., Sphera Levante S.r.l., Sphera Ponente S.r.l., and Sphera Boreale S.r.l. (the "Italy Project Companies"). The Company has also agreed to acquire the remaining 49% capital in each of the Italy Project Companies upon achievement of ready to build status, targeted for 2026-2027.

Additions to the pipeline since the end of fiscal year 2024 include:

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51% share in two 50 MW BESS projects in Poland in the quarter ended June 30, 2024.

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Two 250 MW BESS projects in Queensland, Australia and one 500 MW project in New South Wales, Australia in the quarter ended June 30, 2024.

On October 23, 2024, Pacific Green Energy Parks Holdings (Europe) Limited, a wholly owned UK subsidiary of the Company, also entered into a framework development agreement with a European renewable energy developer to develop BESS projects in Poland with the aim to develop a portfolio of projects with total capacity of at least 400 MW. Projects to include in this pipeline are under evaluation.

BESS project sales

During fiscal year 2024, the Company sold two BESS projects in the UK:

●

On June 26, 2023, the Company sold Richborough Energy Park ("REP"), a 100MW BESS project of energy storage in Kent, UK to Sosteneo Fund 1 HoldCo S.à.r.l ("Sosteneo"). REP completed construction and testing in December 2023, and began operating under a 10-year energy optimization agreement for Shell Europe Limited to purchase the battery capacity from REP.

●

On December 22, 2023, the Company sold Sheaf, its BESS development project to deliver 249MW of energy storage in Sandwich, Kent, UK to Sosteneo. Sheaf holds an energy optimization agreement with SSE whereby SSE purchases the capacity and have the exclusive right to provide optimization services for a ten year period from the start of commercial operations. The project is currently in construction phase.

Project sales since the end of fiscal year 2024 include:

●

On March 19, 2025, the Company sold 100% of the shares in its Limestone Coast North Energy Park, 250MW / 500MWh battery energy storage development in the Limestone Coast region of South Australia, to Intera Renewables ("Intera"), at Ready to Build ("RtB") stage. The project is in construction phase.

BESS project services

For BESS projects sold at RtB stage, the Company is often retained to provide to our customers project management support during construction and operations phases.

The following table presents our total portfolio of BESS projects where we are retained to provide ongoing services:

		June 30, 2024				March 31, 2024				Change
		MW				MW				MW				%
BESS project services:
Construction management			250				250				-
Procurement support			-				-				-
Asset management			100				100				-
Total			350				350				-				-	%

Fees for these services are included in revenue. This is separate from proceeds from sale of BESS projects recorded in gain on derecognition of BESS project subsidiaries.

Non-GAAP Financial Measures

Non-GAAP Financial Measures were disclosed in the Annual Report on Form 10-K for the year ended March 31, 2024, but are not included for the quarter-ended June 30, 2024. Non-GAAP Financial Measures will be disclosed as part of the Annual Report on Form 10-K for the fiscal year ended March 31, 2025.

Results of Operations

The following summary of our results of operations should be read in conjunction with our unaudited interim financial statements for the three months ended June 30, 2024, and 2023.

Revenue

Revenue for the three months ended June 30, 2024 was $1,804,000 compared with $1,189,000 for the three months ended June 30, 2023. The Company's revenues were derived from BESS construction management services, scrubber sales, and scrubber services. During the three months ended June 30, 2024, the Company was in the process of commissioning one (2023 - nil) marine scrubber unit, which contributed revenue of $423,000 (2023 - $nil). During the three months ended June 30, 2024, revenue from services in the BESS and Environmental Technology businesses was $1,245,000 as compared to $1,189,000 for the three months ended June 30, 2023.

Gross Profit

During the three months ended June 30, 2024, the gross profit margin for products and services were 14.9% (2023 - negative 2.4%).

Expenses

Expenses for the three months ended June 30, 2024, were $3,725,000 as compared to $6,913,000 for the three months ended June 30, 2023. Management and technical consulting fees decreased due to non-recurrence of a prior period $3,467,000 charge for bonus paid to the CEO. Management and technical consulting fees were comprised of fees paid to our directors, officers and advisors for business development efforts and advisory services.

Net profit

During the three months ended June 30, 2024, our company recorded a net loss of $3,545,000 ($0.06 per share) as compared to net income of $2,718,000 ($0.06 per share) for the three months ended June 30, 2023.

Our financial results for the three months ended June 30, 2024 and 2023 are summarized as follows:

		Three Months Ended June 30,
		2024 $000				2023 $000
Revenues
Products			559				-
Services			1,245				1,189
Total revenues			1,804				1,189
Cost of goods sold
Products			499				192
Services			1,036				1,026
Total cost of goods sold			1,535				1,218
Gross profit (loss)			269				(29	)
Gain on de-recognition of BESS project subsidiaries			-				11,252
Expenses
General and administrative			2,963				6,181
Depreciation, amortization and impairments			32				38
Property leases and office expenses			526				558
Advertising and promotion			162				104
Research and development			42				32
Total expenses			3,725				6,913
Operating (loss) income			(3,456	)			4,310
Other income (expenses)
Change in fair value of derivatives			-				67
Net interest expense			(214	)			(1,308	)
Total other (expenses)			(214	)			(1,241	)
(Loss) income before income taxes			(3,670	)			3,069
Income tax benefit (charge)			125				(351	)
Net (loss) income for the period			(3,545	)			2,718

Liquidity and Capital Resources

Working Capital

		At June 30, 2024 $000				At March 31, 2024 $000
Current assets			10,498				12,724
Current liabilities			21,566				20,942
Working capital			(11,068	)			(8,218	)

Cash Flows

		Three Months Ended June 30, 2024 $000				Three Months Ended June 30, 2023 $000
Net cash (used in) operating activities			(2,105	)			(6,104	)
Net cash (used in) provided by investing activities			(286	)			6,266
Net cash (used in) provided by financing activities			(367	)			6,678
Effect of exchange rate changes on cash			117				199
Net change in cash and cash equivalents			(2,641	)			7,039

As of June 30, 2024, we had $1,580,0000 in cash and cash equivalents, $10,498,000 in total current assets, $21,566,000 in total current liabilities and a working capital deficit of $11,068,000. This compares to cash of $4,221,000 and a working capital deficit of $8,218,000 as at March 31, 2024. The Company's working capital decreased primarily due to operating expenses for the three months ended June 30, 2024.

During the three months ended June 30, 2024, we used $2,105,000 in operating activities, whereas we used $6,104,000 from operating activities for the three months period ended June 30, 2023. The operating cash flow generated for the three months ended June 30, 2024, resulted primarily from operating expenses incurred for the three months ended June 30, 2024 partial offset by working capital movements.

During the three months ended June 30, 2024, we used $286,000 in investing activities, whereas we generated $6,266,000 in investing activities during the three months ended June 30, 2023. Our investing activities for the three months ended June 30, 2024, comprised primarily additions of projects under development for our Australian and Italian projects, offset by cash receipts from milestone payments relating to the sale of REP.

During the three months ended June 30, 2024, we used $367,000 in financing activities, whereas we received $6,678,000 in financing activities for the three months ended June 30, 2023. Our financing activities for the three months ended June 30, 2024 were related to drawdowns of third party short-term loans offset by the payment of interest relating to a loan from Sheaf Storage Limited, a third party lender.

Liquidity and Capital Resources

As at June 30, 2024, our principal sources of liquidity were our cash and cash equivalents from operations, short-term borrowings, and supply chain financing. The Company is also in discussions to obtain a new development loan facility. We believe these sources of liquidity will be sufficient to meet our expense and capital requirements for at least the next 12 months following the filing of this quarterly report.

We had approximately $1.6 million of cash and cash equivalents on hand at June 30, 2024. Cash and cash equivalents on hand at March 31, 2025 were $6.2 million.

Since June 30, 2024 the Company has entered into a number of loan agreements to increase liquidity and provide working capital for BESS project development and periodic sales:

Corporate short term loans

Pacific Green Energy Parks (UK) Limited, a wholly owned subsidiary of the Company, entered into four separate loan agreements with a group of independent third party lenders for a total £900,000 between May 15 and May 28, 2024. The Company also entered into a loan agreement with an independent third-party lender in the same group for $1,270,000 on May 28, 2024. The five loans are identical in terms. The loans incur a fixed premium of 20% of principal, payable in full on repayment of principal. The loans were repayable on December 31, 2024, or earlier if certain liquidity events occur (whose conditions were not met).

Subsequent to period end, on November 15, 2024, the Company entered into a new loan agreement to borrow a further £5,210,000 from this group of lenders and one new lender, and also refinance certain of the existing loans received in May 2024 into this new loan agreement, novating all refinanced loans for the Company to be the borrower, instead of Pacific Green Energy Parks (UK) Limited in some cases.

The refinancing redenominated the previous US dollar $1,270,000 loan to sterling £1,000,000. Two lenders did not participate in the refinancing and £200,000 of principal plus 20% fixed premium were repaid between December 31, 2024 and January 2, 2025, giving a total of £1,700,000 from original lenders contributing to the refinancing. The fixed 20% premium on these original loans was capitalized into the principal upon refinancing, giving a net increase to principal of £340,000 on these loans. The new funds lent £5,210,000 and refinanced original loans £2,040,000 give a total new principal under this loan agreement of £7,250,000.

Both the refinanced loans and the new loans are due 20 business days after Pacific Green Energy Parks (UK) Limited receives its first payment milestone from Sosteneo relating to its sale of the Sheaf project, as detailed within Note 9. This payment milestone is for £7,260,000 and is expected to be received in late 2025. The loan incurs a fixed premium of 20% of the new loan principal, payable when the loan principal is repaid. The lenders hold security over the first Sheaf payment milestone and over a new bank account set up by Pacific Green Energy Parks (UK) Limited to receive this milestone payment.

Should the Company default on the loan(s), the lender(s) can elect to convert up to 100% of the amounts outstanding to the equivalent value of ordinary shares in the Company at the Default Conversion Strike Price (defined as 0.7 x the Company's average share price on the 10 business days before and after the Event of Default).

Australia loan

Subsequent to period end, on August 15, 2024, Pacific Green Technologies (Australia) Limited ("PGTA"), a wholly owned subsidiary of the Company, entered into a AUD 11,000,000 loan agreement with an independent third party lender to fund further development of our Australian BESS portfolio. The loan does not bear interest but incurs a fixed premium of 20% of the loan principal, payable in full upon repayment of the principal. The loan principal is to be repaid in full at the earlier of six months or the sale of one of the Company's Australian BESS projects.

The loan is secured against PGTA's direct or indirect shareholdings in the Company's Australian BESS projects. The Company has also provided the lender a guarantee in the event of default.

Subsequent to period end, on December 19, 2024, PGTA entered into a new loan arrangement with the same lender which effectively refinanced the previous AUD 11,000,000 loan agreement. This new loan became effective on February 26, 2025 and due to mature ten months from this date. This resulted in the payment of AUD $2,200,000 repayment premium from the last loan on March 21, 2025 following the completion of the sale of the Limestone Coast North BESS project. As the repayment premium of the previous loan was repaid after the new loan became effective, PGTA was charged an additional 1.67% per month interest charge on the AUD $2,200,000 repayment premium.

The new loan does not bear interest but, similar to the previous loan, incurs a fixed premium of 20% of the loan principal which is payable in full upon repayment of the principal. However, the loan's ten-month maturity date is conditional on the PGTA receiving either receiving two non-binding offers ("NBO") on the Limestone Coast West BESS project or receiving a NBO from the purchaser of the Limestone Coast North BESS project within a six-week period from March 19, 2025. If the NBOs are not received, then the loan becomes repayable following the sale of the Limestone Coast North project. Whilst awaiting NBOs to be received, PGTA will be charged an additional 1.67% interest per month on the AUD 11,000,000 principal amount.

Other loans

Subsequent to period end, the Company entered into five separate loan agreements between August 12, 2024 and September 24, 2024 with four third-party lenders and one related party as follows:

●

The related party loan was agreed on August 13, 2024 with Shead Group Pty Ltd, an entity controlled by Alex Shead, for the Company to borrow AUD 200,000.

●

The other loans with independent third parties were for a total AUD 750,000 and GBP 75,000.

●

The loans all incur a fixed 20% premium payable upon repayment of principal. The loans were all repaid between January 8, 2025 and March 31, 2025.

Going Concern

The condensed consolidated interim financial statements have been prepared on a going concern basis.

The assessment of liquidity and going concern requires the Company to make judgments about its ability to meet its obligations as they fall due for at least one year after the date that the condensed consolidated interim financial statements are issued. The directors have reviewed a fiscal year 2026 budget extended through twelve months from the date the condensed consolidated interim financial statements are issued, based on management's operating plan and anticipated financing arrangements.

In order for the Company to meet its ongoing obligations, including repayment of short-term debt of principal $16.7 million due for repayment within the next 12 months, and also develop BESS projects from its pipeline at scale, management have been in discussion with several parties, including the existing AUD 11.0 million lender to Pacific Green Technologies Australia, to establish a larger development loan facility. This facility is anticipated to be approximately AUD 50 million. The facility will ensure the Company can meet its obligations as they fall due until at least twelve months from the date the condensed consolidated interim financial statements are issued and increase its pace of pipeline development and cash generation from BESS project sales at Ready to Build stage. The fact that the additional funding required has not yet been fully secured indicates the existence of an event that may cause substantial doubt on their ability to continue as a going concern.

Whilst the funding has not yet been secured, the Company is confident that it will be successful, based on:

●

Existing loan relationship with one of the prospective lenders, supportive of the Company's growth plans.

●

Positive interest in the loan facility from prospective lenders.

●

An independent study confirming the current value of the Australian BESS project pipeline sufficient to act at as loan security.

The Company also notes that Limestone Coast West BESS project does not yet have any firm sale offers. This project is currently budgeted to be sold in the second half of fiscal year 2026, and is a major component of overall cash receipts through twelve months from the date the condensed consolidated interim financial statements are issued. The lack of firm offers indicates the existence of an event that may cause substantial doubt on their ability to continue as a going concern.

Management are confident of completing this sale effectively and timely, based on:

●

Recent success in the sale of Limestone North project.

●

Interest has already received from prospective buyers.

●

The project has secured a fixed price 7-year offtake agreement for 50% of the battery capacity.

The directors have also reviewed possible downside scenarios to test the Company's liquidity in the event of adverse circumstances.

Based on the above, the Directors have concluded that the Company remains a going concern and these condensed consolidated interim financial statements have therefore been prepared on the going concern basis.

Off-Balance Sheet Arrangements

We have no significant off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to stockholders.

Critical Accounting Estimates

The preparation of these condensed consolidated interim financial statements in conformity with United States Generally Accepted Accounting Principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated interim financial statements and the reported amounts of revenue and expenses during the reporting period. Our company bases its estimates and assumptions on current facts, historical experience, and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. The actual results experienced by our company may differ materially and adversely from our company's estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected. Accounting estimates and assumptions discussed in this section are those that we consider to be the most critical to an understanding of our condensed consolidated interim financial statements because they inherently involve significant judgments and uncertainties.

Impairment of Long-lived Assets

We review long-lived assets such as property and equipment and intangible assets with finite useful lives for impairment whenever events or changes in circumstance indicate that the carrying amount may not be recoverable. The determination of whether impairment indicators exist requires significant judgment in evaluating underlying significant assumptions including expected sales contracts, operating costs, and current market value of assets. If an indication is identified, and the total of the expected undiscounted future cash flows is less than the carrying amount of the asset, a loss is recognized for the excess of the carrying amount over the fair value of the asset.

Revenue Recognition

We account for revenue under ASC Topic 606, Revenue from Contracts with Customers ("ASC 606") using the five step approach. The most significant estimates and assumptions within the five-step approach are related to identification of performance obligations in the contract and the calculations inherent in the revenue recognition as or when performance obligations are satisfied.

Our marine scrubber sales contracts contain a single performance obligation satisfied over time, based on percentage of completion of the contract. The conclusion for a single performance obligation is based on management's assessment of these contracts, whereby customers purchase the entire marine scrubber system and do not benefit from the separate components on their own. Revenue is recognized over time based on the percentage of completion of the contract, using the input method.

According to ASC 606-10-25-27, if the entity's performance does not create an asset with an alternative use to the entity and the entity has an enforceable right to payment for performance completed to date, revenue should be recognized over time. Our scrubber system is customized to each vessel at the detailed design level, so the performance under the contract does not create an asset with an alternative use. According to our contracts signed with customers under English law, the customers are contractually and legally obliged to pay for performance completed to date that covers cost plus a reasonable profit margin. Therefore, the revenue is recognized over time based on the input method and it is the change in cost of goods sold (using a percentage of costs to complete) that has driven the change in revenues. Significant estimates are involved in using the input method as it relates to estimation of total costs and overall gross margins, and any change in these factors could lead to a difference in timing or amount of revenue and profit.

Revenue from services includes services provided under BESS construction management agreements, specific services provided to marine scrubber systems as well as design and engineering services for CSP. Contracts for specific services provided to marine scrubber systems represent maintenance services which are recognized at a point in time when services are completed. Contracts for CSP include design and engineering services provided to clients which are recognized over time as the service is completed. Contracts for services provided under BESS construction management agreements is recognized over time as the service is provided.

Any changes to our conclusions around single or multiple performance obligations for either or products or services could result in a timing difference in our revenue recognition.