10-K page 7
Revenues
The company had originally recorded rental income of $116,982 from a tenant on the property. However, the payment of rent was contingent on the tenant receiving a license from the Washington State Liquor and Cannabis Control Board. The tenant was ultimately denied a license and agreed to vacate the property before the expiration of the ten year lease term. Therefore, no revenue has been recorded in either year.
10-K page F-7
Revenue Recognition
Revenue is recognized when all applicable recognition criteria have been met, which generally include (a) persuasive evidence of an existing arrangement; (b) fixed or determinable price; (c) delivery has occurred or service has been rendered; and (d) collectability is reasonably assured.
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