Sales are not based on what is paid its based on what is sold, thus u have accts receivable. XCHO built inventory of about $2,000,000 more than their 1Q sales at their sales price in the 1st Q alone, which means they could have sold $2 mill of product in 2Q without reordering in 2Q at all.
They would not do that as it would get inventory too low. But the math is to multiply NPHC sales by about 3.3 to get XCHO's sales. Thus NPHC's 4Q and 1Q sales were way way higher than on bottles sold basis than XCHO's, like in the neigborhood of 4x more bottles were sold by NPHC to XCHO than XCHO sold. Way back in 2009 I pointed out that XCHO sales $s would be much higher than NPHC's sales dollars and some sincere folks thought it was untrue and that NPHC's sales dollars would be the same or even higher than XCHO, which is impossible. Just as impossible as XCHO's sales to Walgreens being as high as Walgreens sales to retail customers. XCHO's $900K to chains equals about $1.65 mill when those chains sell it and it equals about $275K of sales for NPHC based on the bottles sold by XCHO. Thus due to the very large inventory build by XCHO for someone not familiar with distribution they did not pick up that NPHC sales were way higher in 1Q and 4Q than would have happened without that inventory build. Again NPHC's sales would have been about $275k in 1Q if XCHO used just in time inventory model.
I have been of both sides of distribution in businesses, as manufacter and as wholesale and retail distributor so it was easy for me to see this.
This was a post elsewhere in response to a question.
AI
