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Re: jdolby32 post# 3124

Thursday, 03/13/2014 11:16:02 AM

Thursday, March 13, 2014 11:16:02 AM

Post# of 9532
Reality ChecK: Read carefully the PR about the sale to Greenway. The PR states that they have made a sale. Great! The PR also says the anticipated order size is $4 million over 2 years. Therefore the value of PharmaPods contracted to date is unknown.
PharmaPods are made to order, and each is configured differently based on client requirements. Under standard accounting rules, revenue is not recognized until the product ships. Therefore there will be $0 revenue from this order in the financial statements for Q4 2013, and probably $0 for Q1 2014 unless they are able to complete the production of one or more pods by the end of March. In any case, the order is spread out over 2 years and the actual value of the contract is unknown.
Anyone making wild prediction about revenue for these two quarters should call the company and ask them about time to deliver after a contract is in place, and what their current production throughput capability is.