Marani Brands Inc. (MRIB)

[hedge_fun]

The company has NOTES in the filings.........

Goods in transit is listed under assets, and there is no explanation. For all we know it could be bottles from the manufacturer "in transit" to the distillery.

NOTE 4- ACCOUNTS RECEIVABLE AND INVENTORY
Accounts receivable consists of amounts owing by customers for product delivered to them. The Company has evaluated the potential collectability of those amounts and has determined that an allowance of $35,431 is appropriate.
The inventory consists of finished product awaiting delivery to customers.

Accounts Receivable
Accounts receivable are stated at the amount management expects to collect from outstanding balances. Accounts receivable as of September 30, 2014 and Sept 30, 2013, includes amounts for product provided to customers but not collected as of those dates. An allowance for doubtful accounts is provided for those accounts receivable considered to be potentially uncollectable based on historical experience and management’s evaluation of outstanding accounts receivable at the end of the period. Bad debts are written off against the allowance when identified. The Company determined that an allowance of $35,431 was required as at September 30, 2014 and September 30, 2013.

Inventory
Inventories are stated at the lower of cost or market. Cost is computed on a weighted-average basis, which approximates the first-in, first-out method; market is based upon estimated replacement costs. Costs included in inventory primarily include finished spirit product and packaging.

Revenue Recognition
Sales of products and related costs of products sold are recognized when (i) persuasive evidence of an arrangement exists, (ii) delivery has occurred, (iii) the price is fixed or determinable and (iv) collectability is reasonably assured. These terms are typically met upon shipment of finished spirit products to the customer.
Payments received in advance of satisfaction of the relevant criteria for revenue recognition are recorded as advances from customers.