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Verisante Technology revenue $40,000

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Staff writer ▼ | June 5, 2014
Verisante Technology, Inc. announced that the company has released its financial results for the first quarter ended March 31, 2014. Revenues are from the direct sale of an Aura device.
Verisante Technology
Verisante TechnologyVerisante Technology, Inc. announced that the company has released its financial results for the first quarter ended March 31, 2014. Revenues are from the direct sale of an Aura device.


The company normally recognizes revenue when units are shipped, however, as a result of challenges in collecting on some accounts receivables, the company now recognizes revenue only once the substantial risk of collecting has been minimized.

The company will also require certain customers to pay a deposit or make payment in full on any future orders before devices are shipped. For the quarter ending March 31, 2014 the company recognized revenue of $40,000 compared to $235,000 reported for the same period in 2013.

The terms of sale of Aura devices are particular to the distribution agreements signed with each exclusive Distributor Europe. Distributors have terms of sale which include shipping EXWorks the company's manufacturing warehouse and payment terms of net 30-90 days. Devices sold directly by the company have terms of EXWorks the company's manufacturing warehouse and payment terms of net 30 days.

After the company terminated its Canadian distribution agreement to pursue direct sales of Aura in Canada, it made a strategic decision to not aggressively pursue sales in Canada until such time as a trained and qualified direct sales team was in place. During the quarter ended March 31, 2014, the company hired a Director of Sales and Canadian Sales Representative and is preparing for a full product launch of Aura with this direct sales team.

Total expenses for the quarter ended March 31, 2014 was $1,055,694 as compared to $1,214,276 for the same period in 2013, representing a decrease of $158,582 or 13%. The decrease in expenses from 2014 to 2013 is mainly attributed to a substantial decrease stock based compensation and the company's efforts to lower general and administrative expenses.

Salaries remained fairly consistent over the three months ending March 31, 2014 ($257,793) as compared to the same period in 2013 ($242,626). Professional Fees (which include Investor Relations fees) decreased by $25,467, or 17% over the three months ending March 31, 2014 as compared to the same period in 2013. Audit and accounting fees increased significantly during the three months ending March 31, 2014 as compared to the same period in 2013, attributed mainly to the increasing complexities of accounting for manufacturing and inventory in 2013.

In connection with the company's consolidation of operations, engineering and manufacturing space, rent decreased by $25,202 in the three month period ending March 31, 2014 over 2013.


 

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