ViaDerma Inc (VDRM)

[nsomniyak]

No. Revenue (an income statement account) is recorded at time of sale. On the balance sheet, that sale goes into an account called Accounts Receivable, until such time as it is actually collected (paid by the buyer). Upon collection you debit AR and credit cash to end up with cash on the balance sheet.

In this case it looks as though VDRM simply gave materials to the related party and pretty much winked and said don't bother paying us.