Fusion Pharm, Inc. (FSPM)

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This is from the report. Explanation of the $500,000 difference.


Note%4%2012%Restatement% In connection with the finalization of our 2013 financial statements, we have restated our 2012 financial statements to reverse $500,000 of the $750,000 in revenue that was recognized during 2012 for the previously reported exclusive licensing arrangement with VertiFresh LLC (“VertiFresh”) for the use of PharmPods growing technologies for agricultural products. The restatement was based on reevaluating the arrangement with VertiFresh which required $250,000 be paid during 2012 for the licensing of the Colorado territory (on a nonrefundable basis), and the remaining $500,000 to be due in equal installments of $250,000 during 2013 and 2014 for the rights to two additional territories. The initial $250,000 was paid during 2012 and was reflected as earned revenue. The remaining $500,000 was set up as an accounts receivable and was reflected as earned revenue in error under US GAAP as the formal agreement was never finalized the amounts due were for future territories and therefore not earned during 2012 and collection of this amount was never reasonably assured given the startup nature of VertiFresh. No further payments are anticipated.