First: You've been saying the false and misleading statement, but estimation is estimation. The warning,below,has been always stated in the Yippy financial report. With something occurring at the last minutes, even the Fortune 100 companies would report the significant difference from the revenue guidance or estimation.Nothing wrong with Yippy stating the difference numbers, though it is surely not a good thing.
(Yippy, Inc.Notes to Consolidated Financial Statements
May 31, 2014)
Use of Estimates
The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to
make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and
liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.
Making estimates requires management to exercise significant judgment. It is at least reasonably possible that the estimate of the
effect of a condition, situation or set of circumstances that existed at the date of the financial statements, which management
considered in formulating its estimate could change in the near term due to one or more future confirming events. Accordingly, the
actual results could differ significantly from estimates.
Second: I asked Rich about the cancellation of the project by a customer, as soon as the Annual report was released, but Rich didn't give me any answers. I think it's because he can't tell anyone about business involving his customers.
So, I had to come up to guess about it,then, I found and have read the below:
(in the 1st quarter financial statement)
Revenues
Revenues for the three months ended August 31, 2014, were $50,536, compared to $185,340 for the same period ending August 31, 2013. The decrease in revenue from the previous period is attributed to the Company’s change in customer deliverables attributed to the EASE platform and the need for ISO certifications which as of the date of this report is in process. The Company anticipates delivering the EASE platform on appliances (servers) late 2014.
Reading this, my guess is that Fluor is the company who cancelled the project due to that they found the EASE needed the ISO certification and Yippy agreed to cancel the contract of the project,because getting certification is not a certain thing. However, they will have a re-contract as soon as EASE gets the certification.
That's what the above revenue statement is talking about "change".
Meanwhile, I say any cancellation happens anytime between the companies. It depends on the related companies' circumstances. It's not necessary meaning EASE was not good enough. Who knows?
AI
