look at the filing further.
Prior to June 1, 2011, the Company carried no salable inventory and shipped
manufactured goods related to purchase orders directly from Stone Corporation. At June 30, 2011 inventory consists of $539,543 of finished goods and $64,981 of work in process.
The Company maintains a perpetual inventory and report by product. This is updated daily based upon shipping and
sales reports. Due to the high style nature of the Company’s merchandise, reserves are recorded to reduce the
carrying value of slow moving, out of season, and broken style merchandise to market value and as additional cost
of sales. As of June 30, 2011, there have been no reserves made for inventory on hand.
that means from June 1st till June 30th they sold 40k of product in a one month period and that is a month before the online store even rolled out.
On June 1, 2011, Horiyoshi The Third Limited amended its License Agreement with Stone Corporation. Pursuant to
the amended license agreement the Company holds the exclusive, worldwide rights to use, and sublicense to use,
rights related to the mark ?HORIYOSHI?, and all derivatives thereof, in connection with the manufacture,
so you wonder why they lost money. it's cause they bought out there rights 100%
