Replies to post #40892 on CV Sciences Inc (CVSI)

[Vandalayind]

Yet they never purchase raw material and claim to be operating off the same 2M or so raw material purchase they made over a year ago.

This is where I believe the slight of hand is happening on their balance sheets, and where I do not trust the figures reported.

https://www.invensis.net/blog/finance-and-accounting/4-ways-inventory-management-affects-financial-statements/

They also reported 316K in inventory on the last Q.


"Inventory – Inventory is stated at lower of cost or net realizable value, with cost being determined on an average cost basis. As of September 30, 2018, the Company had $312,626 of inventory in Germany and The Netherlands."

This is only a suspicion, so make of it what you will, but 316K in inventory for a company that supposedly does revenues of over 10M does not seem to add up. Imagine what TLRY's balance sheet might look like without any additional inventory costs associated with business operations.

It appears by the balance sheet that the inventory they have said they have, and will carry them through...I forget when, has never turned over.

How can a company making record profits Quarterly never turn over their raw material inventory?

I do not like this portion of the balance sheet.

This is only a guess and I do not have accounting experience to cite. Just a hunch. But I do know in business...in general, the more you sell...the more you have to buy.

And then even still in this instance the inventory is a stated value by a management that has a history of deviance.