NOTE 4: SIGNIFICANT ACCOUNTING POLICIES: Revenue Recognition (Policies)
|9 Months Ended|
Sep. 30, 2019
On January 1, 2018 the Company adopted guidance contained in Topic 606 (FASB ASC 606). The core principle of Topic 606 (FASB ASC 606) is that an entity should recognize revenue to depict the transfer of goods of services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The revenue recognition guidance contained in Topic 606, to follow the five-step revenue recognition model along with other guidance impacted by this standard: (1) identify the contract with the customer; (2) identify the performance obligations in the contract; (3) determine the transportation price; (4) allocate the transportation price; (5) recognize revenue when or as the entity satisfies a performance obligation. Previous practices were broadly consistent with this approach, and the company determined the amount of revenue based on the amount customer paid or promised to pay.
Revenues are recognized when title for goods is transferred; non-refundable fees and proceeds from irrevocable agreements recognized when inflows or other enhancements of assets of the Company are received.
On August 21, 2018, AXIM Biotechnologies, Inc. (the Company) entered into an agreement with Revive Therapeutics Ltd. (Revive) to begin selling the Companys flagship nutraceutical product throughout the rapidly expanding Canadian cannabis market.
The agreement defines a relationship where Revive will seek regulatory approval for AXIMs proprietary, controlled-release functional chewing gum which contains hemp oil and cannabidiol (CBD). Under the terms of the agreement, Revive will have a minimum purchase amount annually, which increases each year for the term of the agreement.
On September 3, 2018, the Company entered into a Letter of Intent (LOI) with Impression Health Limited (Impression), Australian company. Pursuant to the LOI, both parties will endeavor to enter into a definitive agreement whereby the parties will co-develop new products. Impression will collaborate with Axim for the licensing and distribution of its current and future medical cannabinoid products for distribution in Australia and New Zealand.
On February 8, 2019 the Company received orders for 7,500 boxes (225,000 individual units, or 22,500 blisters) of its chewing gums. The orders were produced and shipped to the clients as of September 30, 2019.
On April 23, 2019, the Company announced that its nutraceutical division entered into a purchase order agreement for the purchase of 50,000 boxes (1.5 million individual pieces) of its proprietary cannabidiol (CBD)-based chewing gum with a leading direct-to-consumer company for distribution throughout the United States.
On May 31, 2019, AXIM Biotechnologies, Inc. (AXIM) entered into a cannabinoid product supply agreement with Impression Healthcare Limited (Impression), Australias largest home dental impression company, for the supply of the AXIMs toothpaste and mouthwash containing cannabidiol (CBD) for its clinical trial for the treatment of periodontitis. The supply agreement is in preparation for a clinical trial to test the effectiveness of CBD in treating periodontitis. The clinical trial will be performed at Swinburne University of Technology in Melbourne, Australia. In accordance with the agreement, AXIM will supply the first batch of its patented toothpaste and mouthwash products containing CBD, along with associated placebo units for Impression to perform a randomized control clinical trial. Axim received 2 million shares of Impression healthcare in consideration and recorded 57,400 in income
Revenues from continuing operations recognized for the three and nine months ended September 30, 2019 and 2018 amounted to $403,012, $6,224, $513,161 and $28,646, respectively. The Company expanded sales activities and received new orders in 2019.
Disclosure of accounting policy for revenue. Includes revenue from contract with customer and from other sources.
Reference 1: http://www.xbrl.org/2003/role/exampleRef