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Post by tomtabb on Jun 6, 2018 7:09:20 GMT -5
"Voucher Program – Under the voucher program, potential new patients are given vouchers which they can provide to retailers for a free product. The retailers provide the product to the patient for free and pay the wholesaler for the product, who pays the Company.
The retailers submit the vouchers to a program administrator which pays the retailer for the product.
The administrator then invoices the Company for the amount of vouchers paid plus a fee.
Accordingly, on a net basis, it is not probable that the Company will receive the consideration to which it is entitled for these products.
Therefore, the Company excludes such amounts from both gross and net revenue. The cost of product associated with the voucher program is included in cost of goods sold."
I don't understand the "accordingly...products" line. What is the consideration to which they are entitled? They say not probable, so does that mean it's possible? How much would it be? What has net basis have to do with it?
Thanks.
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Post by dreamboatcruise on Jun 6, 2018 9:56:53 GMT -5
"Voucher Program – Under the voucher program, potential new patients are given vouchers which they can provide to retailers for a free product. The retailers provide the product to the patient for free and pay the wholesaler for the product, who pays the Company. The retailers submit the vouchers to a program administrator which pays the retailer for the product. The administrator then invoices the Company for the amount of vouchers paid plus a fee. Accordingly, on a net basis, it is not probable that the Company will receive the consideration to which it is entitled for these products. Therefore, the Company excludes such amounts from both gross and net revenue. The cost of product associated with the voucher program is included in cost of goods sold." I don't understand the "accordingly...products" line. What is the consideration to which they are entitled? They say not probable, so does that mean it's possible? How much would it be? What has net basis have to do with it? Thanks. If the retailer didn't submit the voucher then MNKD gets to keep the money. I would say that would be highly unlikely to happen except at the most poorly run mom and pop pharmacies. It's probably all electronic/automated at most pharmacies based on a code rather than actual paper. Though that's why there are so many mail in "rebates" for consumer products, as in that case many consumers are lazy/forgetful and never get around to submitting for the rebate.
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