Replies to post #272787 on Avid Bioservices Inc (CDMO)

[NoMoDo]

The cost of goods sold is also deferred

Absolutely true. They don't use cost of goods sold. They use Cost of Contract Manufacturing and according to FASB:

All costs related to satisfied performance obligations and costs related to inefficiencies (i.e., abnormal costs of materials, labor, or other costs to fulfill) are expensed as incurred

It is likely that some of the costs associated with the manufactured product will end up on next Q, but at least a portion should have been expensed already. Might be enough to tip the balance.