v3.26.1
REVENUE AND DEFERRED REVENUE
 12 Months Ended
Dec. 31, 2025
Notes and other explanatory information [abstract]  
REVENUE AND DEFERRED REVENUE

NOTE 17 – REVENUE AND DEFERRED REVENUE

 

The Company has derived its revenue from the sources as summarized in the following:

 

   December 31, 2025   December 31, 2024   December 31, 2023 
Software development  $565,927   $727,073   $758,307 
Software license   170,051    165,410    200,593 
Software supports   55,386    45,513    47,102 
Cloud hosting   46,477    48,550    59,926 
Others   8,690    12,293    10,933 
Revenue  $846,531   $998,839   $1,076,861 

 

The Company recognized revenues from contracts with customers in accordance with the following timing under IFRS 15:

 

   December 31, 2025   December 31, 2024   December 31, 2023 
Revenue recognized over time  $676,480   $833,429   $876,268 
Revenue recognized at a point of time   170,051    165,410    200,593 
Revenue  $846,531   $998,839   $1,076,861 

 

 

FEMTO TECHNOLOGIES INC.

Notes to the Consolidated Financial Statements

For the Years Ended for December 31, 2025, 2024 and 2023

(Expressed in Canadian dollars, unless otherwise noted)

 

NOTE 17 – REVENUE AND DEFERRED REVENUE (continued)

 

Deferred revenue represents contract liabilities for customer payments received related to services yet to be provided subsequent to the reporting date. Significant changes in deferred revenue during the years ended December 31 are as follows:

 

   December 31, 2025   December 31, 2024 
Deferred revenue, beginning  $140,088   $131,794 
Customer payments received attributable to contract liabilities for unearned revenue   182,653    141,126 
Revenue recognized from fulfilling contract liabilities   (177,337)   (132,832)
Deferred revenue, ending  $145,404   $140,088 

 

The Company derives significant revenues from one customer. During the year ended December 31, 2025, 2024 and 2023, revenues from this customer were 80%, 67% and 82% respectively, of total revenue. The trade receivable outstanding as at December 31, 2025, and 2024 are due from this customer.