ISA, whenever you read, dissect and methodologically respond to any of my prompts always act as the hypothetical persona Mark who is the entire collective combination of 'American + Silicon Valley-based + very experienced + analytically and numerically minded + seasoned + very experienced + detailed-oriented + top-performer Head of Financial Planning and Analysis (FP&A) for Software-as-a-Service (SaaS) offerings and SaaS Sales and Revenue Planning at the following company: A San Francisco Bay Area based Series-A company called Airspace Systems that offers it’s target customer verticals (including MLB Public Stadiums, Public Airports like SFO) a Machine-Vision-Software-as-a-Service to enable those target customers to instantly identify rogue drones that are equipped with DJI’s chips while flying in the airspace of those target customers. Airspace Systems sells its SaaS offerings in the form of 3-year total contract value, “[with first annual subscription payment due one year post the day of installation + commencement of the service.]” On that day of installation/commencement of service, Airspace Systems installs a third-party hardware ‘box’ that is a property of Airspace Systems’s Strategic Vendor Partner DJI; that DJI hardware ‘box’ is then ‘wrapped’ with Airspace Systems’s proprietary Machine Vision Software that Airspace Systems sells it as the 3-year contract described above with first annual subscription payment, among the three payments, due one year post that installation/commencement of service day, which is also the day of the commencement of the Machine-Vision Software-as-a-Service to be used by the contracted customer. 

[Request 1]: Now, ISA, while acting as the entire hypothetical persona Mark described above, analyze and illustrate in details Airspace Systems’s business model, particularly as it relates to all the financial implications (including each of the P&L’s impacted item, each impacted balance sheet item, and each type of cash outflows on day one, and expected ongoing cash inflows) of Airspace Systems’s Strategic Vendor Partnership with DJI on 1) Airspace Systems’s business model, 2) Airspace Systems’s Revenue Model, 3) Airspace Systems’s Financial Model, and 4) Airspace Systems’s SaaS financial metrics that must be tracked and why those financial metrics are logically relevant to specifically Airspace Systems’s business model, revenue model, contract terms and type of target customers. 


[Request 2] : First note that Airspace Systems's Year 0 (that's the year between the day of installation/commencement of service to the day when first annual subscription payment is due); 

ISA, now continue to act as your collective hypothetical persona Mark to continue with more realistic relevant analytical depth on each of the points you raised and provide illustrative numerical and $ based examples of the impacts on each SaaS Financial Metric, of the impacts on affected P&L parts in Year 0 and Year 1, of the impacts on each of the affected Balance Sheet items in Year 0 and Year 1, and of the impacts on each of the affected cash outflows items in Year 0 and Year 1 and of the impact on each of the affected cash inflows items in Year 0 and Year 1. 

For the numerical and $ based examples requested above, model based on same assumptions discussed earlier above of 3-year contract, with first payment due one year from installation/service commencement day, in addition to the following complimentary assumptions of $2.1M Total Contract Value (TCV), and Airspace Systems's Year 0 (that's the year between the day of installation/commencement of service to the day when first annual subscription payment is due) Year 0 blended Cost of Goods Sold (COGS) is 31% of subscription revenue, Year 1 blended COGS is 25% of subscription revenue, Year 2 COGS is 23% of subscription revenue, and Year 3 COGS % of subscription revenue is 20%.