Dewmar International BMC Inc (DEWM)

[21ZNA9]

DIRTBAG CEO pays HIMSELF for "Distribution". LOLzzzzzzz.

The Company is engaged with a distributor that is wholly-owned by the Company’s CEO (the “Distributor”). The Distributor is responsible for shipping out product samples, transferring small quantities of product to local distributors at the request of the Company, sales of product to local retailers or small wholesalers and for the fulfillment of online sales orders. The Company may withdraw cases of product from the Distributor at the Company’s will for Company use, for which the Company will provide the Distributor with a credit memo based on a per-case price equal to the price paid by the Distributor to the Company.


The Distributor pays the Company on a per case basis which is consistent with terms between the Company and third party distributors. Since the Company uses a substantial amount of the Distributor’s inventory as samples and promotions, the Company offers the Distributor credit terms of “on consignment.” During the nine months ended September 30, 2013 and 2012, the Company recognized revenue from product sales to the Distributor of $9,054 and $8,500, respectively, which represented 4% and 2%, respectively, of total product revenue recognized by the Company. At September 30, 2013 and December 31, 2012, receivable from the Distributor was $10,853 and $6,329 respectively.

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