The Company meets criteria one, three and four through the execution of an engagement letter or similar arrangement with its client. The engagement letter states the key deliverables of the engagement and the fixed retainer outlines the consideration to be received and how any additional consideration (an uptick) may be earned. The Company’s clients are large established companies and due diligence is performed to ensure the client has the ability to pay. Additionally the Company’s historical accounts receivable write-offs are low so collectability is reasonably assured. Therefore, criteria one, three and four are established at the beginning of the search with minimal judgment. Criteria two is more difficult to establish as services are rendered over the course of a search and searches vary in length and difficulty. Typically companies in the service industry recognize revenue based on hours worked on a project multiplied by a standard rate per hour, however the Company does not have a time tracking system so the Company must develop a model to estimate the level of efforts expended over the life of a search in order to properly recognize revenue. Based on the Company’s knowledge of its business and industry it is evident that the level of effort required by each executive search team (including partners, associates and executive assistants) varies over the life of a search. Greater effort occurs in the beginning of the search when the candidates are being determined and less effort occurs in the second half of the search when clients are assessing the candidates that have been presented. To be able to recognize revenue appropriately the Company designed a survey process to obtain data upon which to allocate the percentages earned throughout the life of a search