You are correct. It is an expense. Shares of stock were given out for these services, but there is no substance behind these services. Essentially, this is a short cut to the following:
BCCI buys some ice cream related services and products, but does not pay for these up front. So it is a accounts payable liability.
For practical purposes, they pay with shares. But the real transaction would have been that the vendor from whom they received the services and products bought shares of stock from BCCI. This gave BCCI the cash to buy the services and product, which the company would have subsequently used to pay the provider for the services and product. This, at that moment, of course, is a pre-payment, but we already know that the product has been delivered--at least a substantial part thereof. So, some of it could still be a pre-payment, which would show if there are deliveries still to be made. However, it has been a long time, and we know that the product has been distributed to, at least, two grocery chains and that it has been available in some kiosks.
So much time has gone buy that it is unlikely that any of this product is still to be delivered. So there is no asset left for all practical purposes. However, the profit/loss statement should be showing, in the absence of a very large profit from the sales of ice cream, a very large loss on the bottom line.
Since pre-payments, post-payments are almost always completed within 90 days of delivery, it would be reasonable to accept that this has already transpired in full. We are dealing with a food product that leaves for stores an a daily basis; not an airplane or a ship that could take several years after contract to be delivered. And in those cases progress transactions are made along the way.
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