SCRC....NEWS OUT!!!....ScripsAmerica Comments on Revenue Recognition to Shareholders
Date : 08/19/2013 @ 8:30AM
Source : GlobeNewswire Inc.
Stock : Scripsamerica (SCRC)
Quote : 0.33 0.0 (0.00%) @ 5:32AM
ScripsAmerica Comments on Revenue Recognition to Shareholders
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Scripsamerica (OTCBB:SCRC)
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Today : Monday 19 August 2013
CEO of ScripsAmerica Inc. (OTCBB:SCRC), Bob Schneiderman, today commented on revenue recognition regarding a Department of Defense (DoD) joint venture in the Company's most recent 10Q filing.
Revenue generated from ScripsAmerica's joint DoD contract was $1,293,880 for the three months ended March 31, 2013 and $3,249,225 for the six months ended June 31, 2013. However, due to financial reporting requirements, the Company can report only the net profits from the joint venture and not the top line revenue.
As a result, management inserted 'footnotes to the financial statements 3b paragraph 3 and footnote #5, in its recent 10Q explaining why ScripsAmerica must report this way. The management discussion and analysis item 2 in the subparagraph entitled 'Results of Operations' in the filing clearly shows the revenue generated from this shared contract.
"It is very important that our shareholders are made aware that the Company's necessary accounting method has a significant impact on the reportable revenues from our DoD joint venture, which will continue to generate revenue and profits for ScripsAmerica for a minimum of 26 more months," stated CEO, Bob Schneiderman.
"This is in addition to revenues that will be generated from our independent pharmacy distribution deal with a large network, joint venture with Wholesale Rx, RapiMed product distribution in the U.S. and China, and other potential initiatives which bode well for the Company and its shareholders for the rest of 2013 and beyond. We will continue to report these revenues in the body of our filings and urge our shareholders to take note of these very important financial figures," added Schneiderman.
