Bemax Inc (BMXC)

[I-Glow]

The 10-Q states very clearly the scenario you posted isn't accurate.

A purchase order is a contract between the buyer and seller.

Not a check.

Bethel hasn't paid for the diapers yet. They will just before shipment by Bemax.

"This new purchase order resulting from the long-term supplier agreement filed on November 16, 2015 is the first tranche of purchase order in 2017, with Bethel Imports paying for each consignment before shipment by Bemax".

This is why she is taking on dept.
Once she gets paid. The loans will be paid.

From the 10-Q: "Pre-payment Policy: All sales to our customers will be solely on a pre-payment basis. Once the order is completed and payment is received, we will place an order with the North American supplier of disposable baby diapers and arrange shipping directly to our customers. The process is expected to take three weeks to complete. The pre-payment will be recorded as deferred revenue until the delivery is executed." As you can see in the 10-Q there isn't any Deferred Revenue entered into the financial statement.

IG