Replies to post #94400 on Ayala Pharmaceuticals Inc (fka ADXS)

[hovacre]

Appears to be related to revenue recognition, which does not stop negative cash flow, per se.

[raja48185]

I'm trying hard to make sense of the report, so help me here:
They show a net income of $12.817M in the last quarter, but the total cash and cash equivalents dropped from $44.141M to $32.710M (a drop of $11.431M) in Q1? How that's possible? The numbers don't add up!


Need to get deep into the financial statements and it will be 'hidden in plain sight'. May be a combo of payment from OS Therapies and penalty paid by AMGN for de-coupling ?

[Maciste]

I would describe it like this. Let's say you receive $10,000 in March for a service that will not be completed until June. You started the job in May and finished 50%. So your revenue for March and April would be zero (even though you received the 10k in March). Your revenue for May would be $5,000 (since 50% of the job is completed) and the other $5,000 would be your June revenue (assuming completion).