Hey BHS, I know you didn’t ask for an explanation, and you’re...

Hey BHS,

I know you didn’t ask for an explanation, and you’re probably all over it, but others might get something out of it....

sales are sales and will never be ‘cash or accrual’. These accounting methods simply relate to when the cash from the sale is collected - Immediately (cash), or later (accrual).

Small companies (think a coffee shop) might use cash accounting. Ie, here is your coffee sir, you give me the cash and our transaction is complete.

larger companies will typically use accrual accounting. Ie: Lemaitre agrees to purchase $4.0M of Cardiocel & Vascucel patches, on 30 day payment terms. The sale (revenue) is recorded as at the date of contract, but the cash might not show up till the following month or quarter depending on timing.

if you look at the balance sheet in the HY report AVR had ~$4.3M in ‘Accounts receivable‘. This is sales that were made, where the cash hasn’t been collected yet. The cash will show up on the September quarter 4C.

be mindful though... the company also had ~$3.2M in ‘accounts Payable’ in the liabilities section of the balance sheet. These are purchases made (raw materials, manufacturing costs etc) that have not yet been paid for. These will show up as cash outflows on the next 4C.

Hope this helps.