MOD-003 · effective 2026-03-01 · ASC 606-10-25-13(a)

Backdated quantity true-up

ModificationCumulative catch-up▲ Material · 7.7% of prior TCV
Δ TCV+$22,500$293,258 → $315,758
Δ Recognized+$15,000$195,258 → $210,258
Cumulative catch-up$15,000Recognized 2026-03
Materiality7.7%Above 5% threshold
Contract timelineQ1 2026 calendar
Master view
Clause diff1 change
Overage rateASC 606-10-32-11View source ↗
overagemeter
− Before
$0.10 per query unit above commit-equivalent volume
+ After
$0.10 per query unit above commit-equivalent volume; meter restated effective 2026-01-01 per Schedule M-3 calibration report 2026-02-26
Schedule diff+$22,500 net · 3 of 3 periods changed
CommitOveragePremium support
$106K$53K$0
JAN
FEB
MAR
Catch-up · recognized 2026-03+$15,000
Each period: old vs new · click any bar to trace provenance
Close memov3 · ASC 606-10-25-13(a)

Facts

Schedule M-3 calibration report dated 2026-02-26 documented a 30% understatement of Acme query units across periods 2026-01 through 2026-02. Restated volume yields $7,500 per period of incremental overage at the contractual $0.10 / unit rate. The amendment effective 2026-03-01 corrects the meter prospectively and recognizes the two-period retroactive amount of $15,000 as a cumulative catch-up.

Treatment determination

Remaining services are not distinct from those already transferred; the corrected metering applies uniformly to the contract term. The modification is accounted for as if part of the existing contract per 25-13(a),1 with cumulative catch-up at the modification date. The billing correction is not a change in estimate under ASC 250 because the contractual right to overage was unchanged: only the meter measurement was understated.

Revenue schedule impact

A $15,000 cumulative catch-up is recognized in 2026-03. Period 2026-03 also recognizes an additional $7,500 of corrected overage. Recognized-to-date through 2026-03-31 moves from $293,258 to $315,758; full-period TCV moves from $293,258 to $315,758.

Materiality assessment

Δ TCV of $22,500 represents 7.7% of the prior baseline of $293,258, exceeding the 5% materiality threshold. Disclosure is required in 2026-Q1 contract activity and on the auditor PBC list. ITGC review of the meter calibration control is recommended as a follow-up. No SEC restatement risk; the correction is within the fiscal year and is a metering error, not a revenue policy change.

Authoritative citations
  1. [1]ASC 606-10-25-13(a)