Fortitude Group, Inc. (FRTD)

[Residuum1]

IHDR (the poster) has told you

...that Craig Huffman plans to recognize revenue in Q3 filings that has not been earned, according to FASB-GAAP revenue recognition requirements and Sarbanes-Oxley compliance rules. If IHDR (the poster) correctly understood CEO Huffman*, that suggests the company soon will be submitting a fraudulent 10-QSB to the SEC. Does that bother you? If not, what has happened to you along the way?

"Revenue recognition. The most common violations of revenue recognition include anticipated recognition; sales booked without transfer of property; 'round-trip' transactions; deferred accounting of discounts, rebates, or guarantees; channel stuffing; collusion with vendors; and accounting of swaps as revenues...."

Source: http://www.nysscpa.org/cpajournal/2004/404/perspectives/nv5.htm

* In post #1093, IHDR (the poster) reports his e-mail exchange with Huffman, in which he states that "...all previous sales announced concerning the EC V will be booked as revenue for the 3rd quarter, even though the installation will occur within 180 days from announced sale and not actually in the 3rd quarter."


"Are they only identifying the amount of the contract set aside for delivery of the product (the sales). Will they be charging installation fees (services) seperately [sic] and identifying them in later quarters?? You need to find out. Hurry back."