Contract Liability |
9 Months Ended |
|---|---|
Sep. 30, 2018 | |
| Contract Liability | |
| CONTRACT LIABILITY | <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b>NOTE 8 – CONTRACT LIABILITY</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0">The Company’s contract liability consists of advanced payments received from the sale of distribution rights within designated territories for a period of thirty years to a distributor. According to ASC 606, the Company determined that the associated revenue would be recognized over the period of thirty years as the agreements for the sale of the distribution rights also called for the Company to continue to produce the product for the distributor over the term of the agreements. For the nine months ended September 30, 2018, the Company recognized contract liability in the amount of $188,639 and revenue in the amount of $1,361 from such sale of distribution rights.</p> |