One other item to look for, Dan, is the exhibits to their next 10-Q. Typically, Companies will attach a copy of "material" contracts as an exhibit to their filing.
This is not to say that the contract is not true, but the details are important. Such things as contract terms, deliverable dates, conditions, "down payments as a condition of the sale," date(s) when cash is due to IMDS, whether the sales price is conditioned on reselling the product (i.e., nonrecourse financing) which could prevent revenue recognition under GAAP, etc. The details will provide us with the real facts for the sale.
Let's hope the contracts make economic sense and that there are not material undisclosed conditions that will put a damper on these sales. Let's hope that the news release did not leave on material conditions that would have us question management's intentions.
If this is above board, the stock should move north. Wish they'd release that contract now, or file a statement with the SEC. Many say "Show me da Money"! |
