Company: MSTR
Filing Date: 2025-02-18
Form Type: 10-K
Source: 0000950170-25-021814
Chunk: 638

Company: Strategy Inc
Filing Date: 2025-02-18
Form: 10-K
Item: Item 8
Chunk 638
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 audit matter. Especially subjective auditor judgment was required in evaluating the range of prices used to establish the SSP for standard product support which directly affects the amount of product license revenue recognized using a residual approach. Changes to the product support fee range could have a significant impact on the determination of the SSP for standard product support, impacting the amount and timing of revenues recognized.

The following are the primary procedures we performed to address this critical audit matter. We evaluated the design and tested the operating effectiveness of certain internal controls over the Company’s revenue process, including controls over the methodology used to determine the standard product support SSP and controls over the Company’s validation of the underlying data used in the SSP analysis. We assessed the range of prices based on observable inputs the Company used to determine SSP of standard product support by comparing them to the selling prices of standalone renewals for standard product support and evaluating whether the standalone prices were sufficiently clustered within a narrow range.

/s/ KPMG LLP

We have served as the Company’s auditor since 2013.

McLean, Virginia

February 18, 2025

72

MICROSTRATEGY INCORPORATED

CONSOLIDATED BALANCE SHEETS

(in thousands, except per share data)

    December 31,

    December 31,

    2024

    2023

    Assets

    Current assets:

    Cash and cash equivalents
     
    $
    38,117

    $
    46,817

    Restricted cash

    1,780

    1,856

    Accounts receivable, net

    181,203

    183,815

    Prepaid expenses and other current assets

    31,224

    35,407

    Total current assets

    252,324

    267,895

    Digital assets

    23,909,373

    3,626,476

    Property and equipment, net

    26,327

    28,941

    Right-of-use assets

    54,560

    57,343

    Deposits and other assets

    75,794

    24,300

    Deferred tax assets, net

    1,525,307

    757,573

    Total assets
     
    $
    25,843,685

    $
    4,762,528

    Liabilities and Stockholders’ Equity

    Current liabilities:

    Accounts payable, accrued expenses,