Easton Pharmaceuticals, Inc. (EAPH)

[RMEG]

No a PO does not mean that any money has been exchanged. It only means, if it exists, that someone/company ordered product to be shipped at some date. Sales are not usually booked or recorded by the shipping company until the product is shipped as required by GAAP. Once the PO issuer receives the product and invoice from the shipping company payment is then submitted under the terms of the PO,ie, 2% discount for payment in 30 days etc....

Easton only receives money when they ship, invoice and receive payment from customer, not when they receive a Purchase Order. Where did you study Accounting? It;s possible Easton may have received a downpayment but there was no mention about that in the infamous PO, PR. As we all know no details were given about the PO other than one was supposedly received.