Umbra Applied Technologies Group Inc (UATG)

[Mcol52]

They dont specify but it looks like they are reinvesting almost 70% back into inventory. Not sure how they are actually differentiating between public holding company expenses and subsidiaries as they are consolidated financials. My guess is that you are right and its for Hygieia Creams. If you check out "other assets" you will see they booked $7,623,789 (h2o contracts) and then under liabilities as a deferred payable/income. This is because they are choosing to report the gross consideration once PO is paid in full. Then there is no earned tax liability for this Q. Probably helps with their credit lines for operations. Under Note 8 pg 29, they sold 3 units s Deferred (unearned) income and a corresponding receivable until such time as the equipment has been constructed and delivered to the Customer at such time revenue will be recognized as permitted under GAAP (Generally Accepted Accounting Principles).They are most likely doing this for tax implications, credit management and because they are auditing and want to uplist so they are using GAAP per SEC filer requirements. They are probably in the middle of constructing the systems. Remember the CEO said that the lead times for parts and materials was like 10 weeks, so he knew that the units wouldnt be delivered until Q2 so he probably wanted to book it in Q2 as completed along with the other contracts they are getting ready to announce. Makes Q2 look even better on paper. Its all accounting and filing magic. Done all the time on big boards.