Eternal Image Inc (fka ETNLQ)

[DonVaBeach]

If I understand the arrangements as outlined, Mathews will manufacture the products, have physical possession of them, physically ship them to their customers, and at that time, record as "sales" the amounts invoiced to their customers.

If that's true, and if I correctly remember my accounting rules, EI will only be able to report the net that they receive from Mathews as some type of revenue. You can't record a purchase, not receive the merchandise, and then record a sale back to the company that you "bought" the product from, for the full purchase price plus a markup.

I say the above because I thought you threw out a $2 to $4 million dollar sales figure for EI a few posts ago. That might be Mathews' sales figure, but EI will only be able to record a relatively small percentage of it, based on whatever formulae they eventually agree to.

Do you agree?