Sort of OT: Lights & Motion on KickStarter

[Keith A]

So I recently received this email from Lights & Motion asking for my support for a KickStarter project they have for new light product for GoPros. I was a bit surprised that a seemingly well established company would be using KickStarter to fund the development of a new product.

I understand the basic concept of KickStarter, but what would a backer of a product receive for their investment? Does it seem unusual for a company like L&M to be using KickStarter?

https://www.kickstarter.com/projects/lightandmotion/sidekick-a-gopro-companion-light

[Keith A]

Well I just answered one of my own questions about what a backer would get for their support...
https://www.kickstarter.com/projects/lightandmotion/sidekick-a-gopro-companion-light/pledge/new?clicked_reward=false

[rwsaunders]

The backers receive a pre-determined item which relates to the amount that they invested...it's listed on the Kickstarter request. Who knows, maybe they didn't want to tap the credit line or beg their banker for funding?

[rgr111]

Yeah, and sometimes companies use Kickstarter as a way to build demand for their new product, like an ad.

[Keith A]

Yeah, and sometimes companies use Kickstarter as a way to build demand for their new product, like an ad.That makes sense -- they certainly got me to look at it. Although I do have several of their products and am happy with them.

[charliedid]

Yeah, and sometimes companies use Kickstarter as a way to build demand for their new product, like an ad.

This ^

[MattTuck]

This is really interesting from an accounting standpoint. It has the potential to be a bit disruptive actually.

Do you book this as straight up revenue?

Do you put it on the balance sheet as some sort of non-dilutive capital with an offsetting liability for the rewards your promise?

[Mr_Gimby]

This is really interesting from an accounting standpoint. It has the potential to be a bit disruptive actually.

Do you book this as straight up revenue?

Do you put it on the balance sheet as some sort of non-dilutive capital with an offsetting liability for the rewards your promise?

Thats an interesting point to raise. It's kind of brilliant on the part of the company though, R&D funding paired with an exact readout of unit sales, all before going into production.