Replies to post #32765 on Bemax Inc (BMXC)

[I-Glow]

That is complete nonsense - obviously there is a lack of understanding of basic accounting - a purchase order is reported each time a order is placed.

Read the Income Recognition in the financials.

"Revenue Recognition

We follow ASC 605-10-S99-1, Revenue Recognition , for revenue recognition. We will recognize revenue when it is realized or realizable and earned. We consider revenue realized or realizable and earned when all of the following criteria are met: (i) persuasive evidence of an arrangement exists; (ii) the product has been shipped or the services have been rendered to the customer; (iii) the sales price is fixed or determinable; and (iv) collectability is reasonably assured.

Pre-payment Policy: All sales to our customers will be solely on a pre-payment basis. Once the order is completed and payment is received, we will place an order with the North American supplier of disposable baby diapers and arrange shipping directly to our customers. The process is expected to take three weeks to complete. The pre-payment will be recorded as deferred revenue until the delivery is executed."

As you can see - the revenue is recognized as Deferred Revenue until Delivery - and all sales are pre-paid.

If you look at the Annual Financials - there isn't any Deferred Revenue reported.

I don't know of any GAAP compliant accounting where the revenue is recognized until the purchase order is completed - that would screw up the COGS - the SGA...

IG

[I-Glow]

Remember the Bemax press release about the $1.1 million contract from Bethel.

Bemax Inc. Receives New Purchase Order for $1.1million Deliveries Starting in February 2017 to Be Completed in May 2017

January 31, 2017) - Bemax Inc. (OTCBB: BMXC), a growing global distributor of Disposable Baby Diapers, is pleased to announce today that it has received an $1.1milion purchase order for the supply of its private-label Disposable Baby Diaper from an existing client...

This new purchase order resulting from the long-term supplier agreement filed on November 16, 2015 is the first tranche of purchase order in 2017, with Bethel Imports paying for each consignment before shipment by Bemax. Bemax expects to complete shipment of this order in Q4 2016, which set the company on track to meet its projected revenue for the current fiscal year."

"The size of this purchase order clearly reaffirms the quality of our private-labels and eliminate the need for financing."

So much for eliminating the need for financing - more BS from the CEO.

Q4 2016 ended on May 31, 2017.

The BMXC CEO provided no explanation as to why the Bethel contract wasn't started/completed.

IG