PowerLinx Inc (PWNX)

[Duly Diligent]

Claire, you seem knowledgable in Accounts Receivables, so I'll ask you to expand a little on your one statement -
"... the sale is recognized as revenue earned because the selling company has completed its part of the transaction ..."

But what if the selling company doesn't ship the product for 6-8 weeks, as is the case with most Secure View orders taken (recently reported to be 4-6 weeks now) ? Do you consider then that the selling company has completed its part of the transaction, even though it hasn't shipped or maybe even made the product yet, and should book the "transaction" to "revenue" immediately ? At the time the order is taken ?

I guess I'm curious to know whether or not the Secure View orders that have been taken to date will appear on 3Q Revenue, since this Q will end in 3 weeks.

On a related question, maybe not in your area of expertise - should the costs of actually making the product and fulfilling the order be booked as expense in the same Quarter ? If not, it seems profit reported for the product might be grossly inaccurate - all the revenue, but little cost.

Thanks in advance.