RE:RE:RE:Nextleaf 26M of OIL from 2020 Biomass Dealsstealthct wrote:
was the biomass listed on the most recent financials as an asset? If not, is it permitted to not include assets on a balance sheet?
I asked IR about this earlier, this is a relevant excert from Jason's reply that should answer your questions:
"Instead of purchasing the supply outright through capital outlay, they are split revenue deals. Basically, what we sell they get a cut. Both were based on a 12 month time frame or a max amount of biomass processed. Those terms are clearly laid out in the PRs (provided below). In the first PR dated April 2 we did mention that the deal has the potential to generate up to $16M. We receive the biomass in batches so it's not like we signed the deal and they sent 15 tons of biomass for us to store and process. We order from them so we can build a small and flexible inventory for potential spot deals and meet current project deadlines. I think understanding that goes along way to figuring out the assumption that it must be listed as an asset..."