Z Squared Inc. Revenue Disclosure

Revenue Recognition – The Company recognizes revenue in accordance with ASC Topic 606, Revenue from Contracts with Customers (“ASC 606”) to depict the transfer of control to the Company’s customers in an amount reflecting the consideration to which the Company expects to be entitled. The Company determines revenue recognition through the following steps:

 

	i.	Identification of the contract, or contracts, with a customer
	ii.	Identification of the performance obligations in the contract
	iii.	Determination of the transaction price
	iv.	Allocation of the transaction price to the performance obligations in the contract
	v.	Recognition of revenue, when, or as, the company satisfies the performance obligations.

  

Under ASC 606, revenue is recognized when control of promised goods and services is transferred to customers. A performance obligation is a contractual promise to transfer a distinct good or service to the customer and is the unit of account under ASC 606. The transaction price of a contract is allocated to distinct performance obligations and recognized as revenue when or as the performance obligations are satisfied.

 

The Company generates revenue from its customers by 1) performing data research for its customers and delivering advertising campaigns via cold emails and social media sites, and 2) providing webinars for its customers to a targeted business-to-business audience. The fee for these services is based on observable prices explicitly negotiated between the Company and the customer. The Company recognizes revenue at the point in time when the good or service is delivered to the customer, which occurs upon delivery of the advertising campaign or webinar and there is a transfer of control to the customer.

 

During the year ended December 31, 2025, revenues from delivering advertising campaigns via cold emails and social media sites were recognized from six customers who accounted for 100% of this revenue. Revenue was recognized at the point of delivery to the customers in the amount of $1,250,545. As of December 31, 2025, the Company has recorded customer deposits in the amount of $599,455.

 

During the year ended December 31, 2025, revenues from delivering webinar services were recognized from three customers who accounted for 100% of this revenue. Revenue was recognized at the point of delivery to the customers in the amount of $112,500.