Replies to post #40302 on Fuse Science Inc (DROP)

[Dyessman]

REVENUE RECOGNITION

The Company records revenue from the sale of Enerjel™, Powerfuse™ and Electrofuse™ , when all of the following have occurred: (1) persuasive evidence of an arrangement exists, (2) product has been shipped or delivered, (3) the sales price to the customer is fixed or determinable, and (4) collectability is reasonably assured. The Company’s customers may return ordered items for a refund . The Company also provides customers incentives to purchase products at a discount. For the three months ended December 31, 2012, we have recorded sales discounts, returns and allowances of $4,740 which is netted against sales.

[highonstock]

I dont disagree with you. The margin is what will become more fluid on sales with large retailers, payment terms are usually given depending on the size of the company. Smaller companies require quicker payment terms because they need the liquid to continue operations. There is some talk of the company recognizing 70% profit for each purchase but that is with them selling the product on their website, not with retailers. However, like any business, retailers are NOT interested in running small companies out of business, they are willing to work with them on all financial aspects (such as quicker payment terms) because consumers want their products.

AIMHO