Applied DNA Sciences Inc (APDN)

[Parkmart]

It depends on the wording in the cotton customers contracts.

If the cotton customer of Himatsingka (IE Wamsutta) states in their contract for Pimacott, that they will pay when sheets are delivered to Bed Bath and Beyond, then you cannot recognize that revenue until the sheets are delivered.
These type of contracts are often referred to as “percentage of completion” contracts. In Hayward’s transcript he refers to this as a being volatile and can impact the timing of cash flows.
It appears that Himatsingka is helping out by paying APDN when the cotton is shipped from the gin. But it is unearned or deferred revenue per the terms of the contract.