OTCPK:SPLID - Post by User
Comment by
Tundra14on Dec 11, 2019 1:57am
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Post# 30442617
RE:RE:Article mentions plus
RE:RE:Article mentions plus Hey bud, in financial accounting terminology, SALES refers to DOLLAR SALES. Sales makes up a company's revenue. Accounting 101.
AFGKhan wrote: Well this article is misrepresentative to begin with. It misquotes the MD&A which states that 80% of the SALES (not revenue) comes from one product supplier. There is a big difference between the 2
Example : I have 100 product (80 from supplier 1 and 20 from supplier 2)
supplier 1 retail price is 1$
supplier 2 retail price is 2$ ( premium product)
I sell them all.
revenue from supplier 1: 80$
revenue from supplier 2: 40$
percentage of supplier 1 revenue on total ; 67%
percentage of supplier 2 revenue on total : 33%
So even though Supplier 1 represents 80% of my sales, it accounts however for 67% of my revenues while Supplier 2 represents 20% of my sales, but accounts for 33% of my revenues
I wouldnt know if this case would apply specifically to Plus Products but according to their financial statements, their revenues were 3.5 million for the last quarter with a margin of 446K, which confirms their high COGS. It is definately something to look more in details