Replies to post #51223 on e.Digital Corporation (fka EDIG)

[Trenddetector]

Re: Eclipse - Cass -

We recognize product revenue upon shipment of a product to the customer, FOB destination or FOB shipping point depending on the specific contract term, if a signed contract exists, the fee is fixed and determinable, collection of resulting receivables is probable and there are no resulting obligations. With most of our consumer electronics retailers, we do not meet the criteria for revenue recognition upon shipment and therefore only recognize the revenue as the product is sold through our customer to the ultimate end-user

You're so easy, Cass. Try to spin it again. Come on, I'm waiting.

[Tinroad]

Who says the Eclipse work is complete? I certainly don't see that in the filing. Here's what they say re deferrals:
In prior years, research and development contract revenue on long-term projects is recognized on the percentage of completion method if reasonable estimate of the costs and revenues can be determined for each of the milestones; otherwise, the revenues are recognized when the product or services have been delivered. Funds received in advance of meeting the criteria for revenue recognition are deferred and are recorded as revenue as they are earned. If the costs we incur on a contract are expected to exceed the anticipated revenue we will record the loss in the period in which the facts that give rise to the revision becomes known.

It seems obvious (for the 3 mos ended 9/30/03) that the project is ongoing, since an additional $30K in deferred NRE fees were reported for the period.