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Accounting Policies: Revenues (Policies)
12 Months Ended
Jun. 30, 2016
Policies  
Revenues

Revenues

 

In the year ended June 30, 2016, we derived our revenue primarily from the sale of balance scooters and vaping equipment.  The Company also markets Chinese herbal and other remedies in the People’s Republic of China, but has not sold any of these products in China as of June 30, 2016.  The Company recognizes revenue when the following fundamental criteria are met: (i) persuasive evidence of an arrangement exists; (ii) delivery has occurred; (iii) the price is fixed or determinable; and (iv) collectability is reasonably assured. Revenue is recognized for hardware product sales upon transfer of title and risk of loss to the customer. We record reductions to revenue for estimated product returns and pricing adjustments in the same period that the related revenue is recorded. These estimates are based on contractual return rights, historical sales returns, analysis of credit memo data and other factors known at the time. If actual future returns and pricing adjustments differ from past experience and our estimates, adjustments to revenue reserves may be required.

 

In the fourth quarter of fiscal 2016, the Company entered into agreements with certain of its vendors in which the Company agreed to sell the vendor’s products on a consignment basis. The Company accounted for the revenues on a net basis based on the guidance of ASC 605-45, as the Company acted as an agent under the agreements. The Company recognized revenue under these consignment agreements when they shipped the vendor’s products to their customers and recognized a 2.5% fee, per the agreements, on the date of shipment. The gross and net sales relating to the agreements during the year ended June 30, 2016 were $81,306 and $2,033, respectively.