Royalties on sales during the Dec qtr are not advised to OBJ until 45 days after the end of the quarter - so by about the 15th Feb, OBJ knows how much it will receive in royalties for 1st Oct - 31st Dec '17 period. Then it bills P&G, and then it waits for the payment to come through 30 days later - so that revenue will likely not be received until after the 31st Mar, so it will be booked into the June '18 4C report. It is ridiculous that revenue has to be calculated on quarterly sales rather than monthly sales; and it is a painfully slow process to wait 45 days to be advised of the sales quantities, and then wait at least another 30 days for payment to come through. Surely P&G must have a better handle on their sales volumes month to month than this indicates.
OBJ Price at posting:
3.9¢ Sentiment: Hold Disclosure: Held
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