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Precedera ASC 606 review - Bridgewater Manufacturing Group, LLC.xlsx
Executive summary
Bridgewater Manufacturing Group, LLC — MSA-2025-04871
| PO # | Performance obligation | Pattern | Period start | Period end | Reviewer comments |
|---|---|---|---|---|---|
| 1 | Hosted platform access (P1) | Over time | 05/01/2026 | 12/31/2028 | Blank, for the reviewer |
| 2 | Customer-specific implementation (P3, P4, P5) | Point in time | 05/01/2026 | 05/01/2026 | Blank, for the reviewer |
| 3 | Enhanced Premium Support (P6, P7) | Over time | 01/01/2026 | 12/31/2028 | Blank, for the reviewer |
| 4 | On-site training sessions (P8) | Over time | Blank, for the reviewer | ||
| 5 | Nimbus University access (P9) | Over time | 05/01/2026 | 04/30/2027 | Blank, for the reviewer |
| 6 | Material renewal right (P10) | Point in time | 01/30/2029 | 01/30/2029 | Blank, for the reviewer |
The bundle is one contract: the sole supplied, signed agreement identifies the parties, rights and payment terms, has commercial substance and meets the collectibility criterion subject to a credit assumption; no separate contract or modification was supplied. The provisional transaction price is $360,000, comprising 36 fixed monthly payments of $10,000. The $532,000 aggregate stated standalone prices are not additional consideration. Late-payment interest and the termination-without-cause fee are excluded because their occurrence and amounts are uncertain and constrained; the optional renewal purchase price is excluded because it relates to a future purchase. Potential significant-financing adjustments for implementation and the renewal right remain unquantified. Hosted-platform access is recognized over time from assumed usable access on May 1, 2026 through December 31, 2028. Customer-specific implementation is recognized at the point of actual written or qualifying deemed acceptance, provisionally May 1, 2026; assumed work begins January 1. Premium Support is recognized over time from its January 1, 2026 commencement through December 31, 2028. On-site training is recognized over time as sessions occur, beginning with the first session and ending with the last; dates are unspecified. University access is recognized over time from assumed provisioning on May 1, 2026 through April 30, 2027. The renewal right is recognized as renewed services transfer if exercised, or upon expiry of the January 1–30, 2029 exercise window if not. Allocation remains pending validated SSPs: contract-stated platform, implementation and support prices are unvalidated, while separate training, portal and renewal-right SSPs are pending. Conclusions also assume routine implementation, acceptance and access dates, comparable training sessions and an incremental renewal discount.
Contract identification
- Customer
- Bridgewater Manufacturing Group, LLC
- Contract / arrangement ID
- MSA-2025-04871
- Documents in bundle
- 01_SaaS_Master_Agreement.pdf (01/01/2026)
- Effective date
- 01/01/2026
- Stated term
- January 1, 2026 through December 31, 2028; 36 months.
- Payment terms
- $10,000 monthly for 36 months; first payment due upon execution and subsequent payments on the first business day of each calendar month. Late payments accrue interest at 1.5% monthly.
Step 1 — Identify the contract (ASC 606-10-25-1)
| Criterion | Conclusion | Evidence (document / section) |
|---|---|---|
| (a) Approval and commitment | Met | 01_SaaS_Master_Agreement.pdf, introductory paragraph and signature block: the agreement identifies both parties and bears dated execution evidence for each. |
| (b) Identifiable rights | Met | 01_SaaS_Master_Agreement.pdf, Sections 1, 4, 6 and 8: services, renewal rights, implementation acceptance and intellectual-property rights are described. |
| (c) Identifiable payment terms | Met | 01_SaaS_Master_Agreement.pdf, Sections 2–3: negotiated price is $360,000, payable in 36 monthly installments of $10,000. |
| (d) Commercial substance | Met | 01_SaaS_Master_Agreement.pdf, Sections 1–3: Nimbus undertakes to provide services in exchange for $360,000. |
| (e) Probable collection | Met | 01_SaaS_Master_Agreement.pdf, Sections 2–3 and 7: fixed monthly payment obligations and remedies are stated; the document contains no adverse credit information. |
| Combination of contracts (606-10-25-9) | n/a | 01_SaaS_Master_Agreement.pdf is the sole document supplied. |
| Contract modification present (606-10-25-10) | No | 01_SaaS_Master_Agreement.pdf, Sections 1–8: no amendment or change order is supplied. |
Step 3 — Transaction price (606-10-32-2 through 32-27)
| Component | Amount ($) | Basis / evidence |
|---|---|---|
| Negotiated fixed consideration for the initial term | $360,000 | 01_SaaS_Master_Agreement.pdf, Sections 2–3: $10,000 monthly for 36 months totals $360,000. The stated $532,000 aggregate standalone prices and 32.3% discount describe the negotiation; they are not additional consideration. ASC 606-10-32-2 through 32-4. |
| Late-payment interest | - | 01_SaaS_Master_Agreement.pdf, Section 3: 1.5% per month applies only to late payments. Under an expected-value method, no late-payment amount is included because occurrence and duration cannot be estimated from the bundle; any estimate is constrained against significant reversal. Reassess if payments become late. ASC 606-10-32-8, 32-11 through 32-12; assumption A7. |
| Customer termination-without-cause fee | - | 01_SaaS_Master_Agreement.pdf, Section 7: the conditional fee is 50% of remaining contract value. The most-likely-amount method yields no fee on the assumption the initial term runs to expiry; a nonzero estimate is constrained because termination and the remaining value are unknown. Reassess upon a change in facts. ASC 606-10-32-8, 32-11 through 32-12; assumption A7. |
| Potential financing adjustment: implementation | - | 01_SaaS_Master_Agreement.pdf, Sections 1(b), 3, 5 and 6: implementation is expected to transfer near May 2026, while installments continue through 2028. The effect is likely significant for this obligation and exceeds the ASC 606-10-32-18 one-year expedient; administrative-convenience wording does not resolve the assessment. Quantification awaits allocation, payment-to-transfer analysis and a discount rate. ASC 606-10-32-15 through 32-19. |
| Potential financing adjustment: material renewal right | - | 01_SaaS_Master_Agreement.pdf, Sections 3–4: amounts allocated from 2026–2028 installments could prepay services delivered after 2028 if the right is exercised. The effect could be significant and cannot be dismissed using the ASC 606-10-32-18 one-year expedient; quantify after determining the option allocation, exercise expectations and discount rate. ASC 606-10-32-15 through 32-19. |
| Transaction price | $360,000 | Provisional included transaction price is $360,000 before any quantified significant-financing adjustment. 01_SaaS_Master_Agreement.pdf, Sections 1–4 and 7, identifies no noncash consideration or consideration payable to Customer; thus no noncash or customer-payable component is included under ASC 606-10-32-21 through 32-25. Monthly amounts associated with contemporaneous hosted access, Premium Support and learning-portal availability do not, on their own, create a significant financing component; installments attributable to on-site sessions require comparison with actual delivery dates. Assess the implementation and material right separately as described above. The optional renewal purchase price is not part of the initial transaction price. ASC 606-10-32-4, 32-15 through 32-18. |
| Ref | Promised good or service | Source (document / section) | Capable of being distinct (25-19a) | Distinct in context (25-19b) | Basis (25-21 indicators) | PO # |
|---|---|---|---|---|---|---|
| P1 | Enterprise hosted-platform access, including named-user seats, data ingestion and API access. | 01_SaaS_Master_Agreement.pdf, Sections 1(a), 2 and 8. | Yes | Yes | On the routine-implementation assumption, the other services do not significantly modify the hosted platform or form an inseparable combined output. ASC 606-10-25-19(b), 25-21; assumption A2. | 1 |
| P3 | Customer-specific platform configuration and SAP S/4HANA data migration. | 01_SaaS_Master_Agreement.pdf, Section 1(b). | Yes | No | These tasks are inputs to the contracted implementation deliverable and are grouped with its dashboard and integration work. They are assumed not to significantly customize the hosted platform itself. ASC 606-10-25-19(b), 25-21; assumption A2. | 2 |
| P4 | Custom-dashboard development and the perpetual license to use the resulting Nimbus-owned dashboards. | 01_SaaS_Master_Agreement.pdf, Sections 1(b) and 8. | Yes | No | Development and the associated use right form part of the customer-specific implementation output, not a separately transferred dashboard product. Significant platform modification is not established. ASC 606-10-25-19(b), 25-21; assumption A2. | 2 |
| P5 | Integration with Customer's existing Salesforce CRM instance. | 01_SaaS_Master_Agreement.pdf, Section 1(b). | Yes | No | The integration is an input to the accepted implementation deliverable; on the stated assumption, it does not significantly modify the platform or combine all contract services into one output. ASC 606-10-25-19(b), 25-21; assumption A2. | 2 |
| P6 | 24/7 Premium Support, designated Customer Success Manager and Severity 1 response commitment. | 01_SaaS_Master_Agreement.pdf, Sections 1(c) and 2. | Yes | Yes | Premium Support does not significantly integrate with or modify platform access and is separately identifiable from it. ASC 606-10-25-19(b), 25-21. | 3 |
| P7 | Quarterly business reviews within Premium Support. | 01_SaaS_Master_Agreement.pdf, Section 1(c). | Yes | No | The reviews are part of the designated Customer Success Manager's ongoing enhanced-support relationship and are grouped with Premium Support. ASC 606-10-25-19(b), 25-21. | 3 |
| P8 | Three two-day on-site training sessions for up to 50 users. | 01_SaaS_Master_Agreement.pdf, Section 1(d). | Yes | Yes | Instruction does not significantly modify or integrate with the platform or the separately accessible learning portal. ASC 606-10-25-19(b), 25-21. | 4 |
| P9 | Twelve months of Nimbus University online learning-portal access. | 01_SaaS_Master_Agreement.pdf, Section 1(d). | Yes | Yes | Ongoing portal availability is separately identifiable from delivery of three on-site sessions and does not modify the hosted platform. ASC 606-10-25-19(b), 25-21. | 5 |
| P10 | Option to renew platform access and Premium Support at 25% below then-current list price within 30 days after expiry. | 01_SaaS_Master_Agreement.pdf, Section 4. | Yes | Yes | Assuming the discount exceeds discounts available without this contract, the option conveys a separately identifiable material right rather than an ordinary marketing offer. ASC 606-10-25-19(b), 55-42 through 55-44; assumption A5. | 6 |
| PO # | Performance obligation (promises included) | Series? (25-14b) | Pattern | Measure of progress | Period start | Start driver | Period end | End driver | SSP ($) | SSP source |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Hosted platform access (P1) | Yes | Over time | Straight-line elapsed time while hosted access is available, subject to confirmation of the access date. ASC 606-10-25-31, 55-20. | 05/01/2026 | Platform access provisioned at the targeted go-live, assumed to be the first date Customer can use the hosted service; not the subscription or billing start. | 12/31/2028 | End of the stated initial term and corresponding platform access. | $255,000 | Stated in contract — not validated |
| 2 | Customer-specific implementation (P3, P4, P5) | No | Point in time | Not applicable; recognize when the completed implementation transfers and Customer accepts it, including deemed acceptance if its conditions are met. ASC 606-10-25-30. | 05/01/2026 | Assumed commencement of implementation work at the agreement's effective date; this is not a revenue-recognition date. | 05/01/2026 | Assumed written sign-off of the final implementation milestone at targeted go-live; otherwise use actual written or contractually deemed acceptance. | $144,000 | Stated in contract — not validated |
| 3 | Enhanced Premium Support (P6, P7) | Yes | Over time | Straight-line time while enhanced support is available, assuming an even stand-ready benefit. ASC 606-10-25-31, 55-20. | 01/01/2026 | Premium Support commences with the stated Subscription Term; the agreement does not condition its availability on platform go-live. | 12/31/2028 | End of Premium Support availability in the initial term. | $108,000 | Stated in contract — not validated |
| 4 | On-site training sessions (P8) | Yes | Over time | Sessions or instructional days delivered relative to the three two-day sessions promised, adjusted if sessions differ materially in effort or benefit. ASC 606-10-25-31, 55-17. | First scheduled on-site instructional session begins; no session date is specified. | Final promised on-site instructional session is delivered; no session date is specified. | Blank, for the reviewer | Blank, for the reviewer | ||
| 5 | Nimbus University access (P9) | Yes | Over time | Straight-line elapsed time over 12 months of available portal access, assuming an even stand-ready benefit. ASC 606-10-25-31, 55-20. | 05/01/2026 | Assumed learning-portal access provisioned with hosted-platform access at targeted go-live. | 04/30/2027 | Completion of 12 months of learning-portal availability measured from assumed access provisioning. | Blank, for the reviewer | Blank, for the reviewer |
| 6 | Material renewal right (P10) | No | Point in time | Not applicable to the option itself. Recognize its allocated amount as renewed services transfer if exercised, or when the option expires if unexercised. ASC 606-10-55-42, 55-44. | 01/30/2029 | Renewal option becomes exercisable upon expiration of the initial term. | 01/30/2029 | Earlier of Customer's actual exercise or expiry of the 30-day post-term exercise window; January 30 is the assumed unexercised expiry. | Blank, for the reviewer | Blank, for the reviewer |
| PO # | Performance obligation | (a) Simultaneous receipt & consumption | (b) Creates/enhances asset customer controls | (c) No alternative use AND enforceable right to payment | Conclusion |
|---|---|---|---|---|---|
| 1 | Hosted platform access | Yes | No | No | Over time |
| 2 | Customer-specific implementation | No | No | Yes / No | Point in time |
| 3 | Enhanced Premium Support | Yes | No | No | Over time |
| 4 | On-site training sessions | Yes | No | No | Over time |
| 5 | Nimbus University access | Yes | No | No | Over time |
Assumptions (facts the bundle does not establish)
| Ref | Assumption | Affects | How to resolve |
|---|---|---|---|
| A1 | Customer has the ability and intention to pay substantially all consideration when due; no supplied document indicates otherwise. | Step 1 collectibility conclusion. | Review Customer credit assessment and payment history. |
| A2 | Implementation uses configuration, migration and integration rather than materially rewriting Nimbus's hosted platform; the dashboards form part of the implementation deliverable. | Distinctness and grouping of platform, implementation and dashboard promises. | Inspect the statement of work, technical specifications and dashboard functionality. |
| A3 | Implementation commences January 1, 2026 and is accepted by written sign-off at the targeted May 1 go-live. Partial work does not meet an over-time criterion, and the termination fee does not assure payment for performance completed to date throughout implementation. | Implementation pattern, period and financing assessment. | Obtain milestone records, actual acceptance evidence, work-in-process control analysis and an enforceability assessment of termination payments. |
| A4 | Customer first receives usable platform access on the targeted May 1, 2026 go-live; Nimbus University access becomes available with it. The learning portal remains available for 12 months from that date. | Periods and recognition for hosted platform and learning portal; contract balances. | Obtain platform provisioning logs and portal entitlement records. |
| A5 | The 25% renewal discount exceeds discounts that otherwise would be available to a comparable customer without this contract; no exercise or expiry before the stated post-term window is established. | Existence, period, SSP and potential financing of the material-right PO. | Compare actual comparable-customer pricing, renewal terms and exercise history. |
| A6 | Each on-site session transfers usable instruction to attendees as it occurs and is substantially similar to the other sessions. | On-site training over-time pattern, series assessment and progress measure. | Review training agendas, attendance and any separately delivered outputs. |
| A7 | Payments will be timely and Customer will not terminate without cause during the initial term. | Current estimates and constraint conclusions for late interest and the termination fee. | Review collection experience and updated termination expectations each reporting date. |
| A8 | Nimbus controls delivery of the specified services; any unidentified subcontractors act on its behalf rather than supplying services that Nimbus arranges as agent. | Principal-versus-agent conclusion. | Review supplier and subcontractor arrangements, if any. |
Open items (resolve before relying on the draft)
| Ref | Open item | Affects | Suggested action | Priority |
|---|---|---|---|---|
| OI1 | What work was actually performed in implementation, who controlled work in process, what was delivered and accepted, and would termination payments compensate completed work plus a reasonable margin throughout? | Implementation distinctness, existence or grouping of POs, over-time versus point-in-time pattern, and acceptance date. | Obtain technical scope, milestone and acceptance records, and an enforceability analysis of payment rights. | High |
| OI2 | When were usable platform, Premium Support and Nimbus University access actually provisioned, and when were the on-site sessions delivered? | Service and training PO periods, revenue timing and contract balances. | Obtain provisioning logs, portal and support activation records, and training schedules and attendance. | High |
| OI3 | What are the validated SSPs for all six POs, including a split of the contract's combined $25,000 training price and a value for the renewal right? | Allocation of the $360,000 price and related financing calculations. | Validate contract-stated platform, implementation and support prices against standalone sales; determine separate on-site and portal SSPs and the option's incremental discount and exercise likelihood. | Medium |
| OI4 | What financing adjustment results from the installment schedule for implementation and the material right? | Transaction price, interest income or expense and allocation. | Map allocated consideration to expected transfer dates and obtain an appropriate inception-date discount rate; quantify and document significance by obligation. | Medium |
| OI5 | Were commissions or other incremental acquisition costs or fulfillment costs incurred? | ASC 340-40 contract-cost assessment. | Obtain commission plans and implementation and other fulfillment-cost records. | Low |
| OI6 | Does comparable-customer pricing confirm that the renewal discount is incremental to discounts available without this contract? | Material-right conclusion and its SSP. | Compare actual prices and discount practices for comparable new and renewing customers. | Medium |
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