Get Started for Free Contexxia identifies hard-to-find pieces of information in SEC filings. No more highlighters, no more redlining, no more poring over huge documents. NEUTRA CORP. (1512886) 10-Q published on Jun 21, 2021 at 12:54 pm
On February 1, 2018, the Company adopted ASC 606, Revenue from Contracts with Customers, and the related guidance in ASC 340 40 (collectively, the new revenue standard) using the modified retrospective method applied to those contracts which were not completed as of February 1, 2018. Under the modified retrospective method, the Company recognizes the cumulative effect of initially applying the new revenue standard as an adjustment to the opening balance of retained earnings; however, no adjustment was required as a result of adopting the new revenue standard. Results for reporting periods beginning after February 1, 2019 are presented under the new revenue standard. The comparative information has not been restated.
ASC 606 requires that an entity recognize revenue to depict the transfer of control of promised goods or 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. For the three months ended April 30, 2021 and 2020, revenue from contracts with customers was $11,553 and $3,036, respectively.
During the three months ended April 30, 2021, we incurred and paid salary expense of $25,000 to our CEO, Sydney Jim. In addition, we incurred commission expense of $2,914 payable to Mr. Jim during the same period. The commissions were not paid during the period. During the three months ended April 30, 2021, the Company repaid advances of $13,922 owed to Mr. Jim. As of April 30, 2021, we owe Mr. Jim, or entities controlled by him, $46,633, which is recorded on the balance sheet in “Accounts Payable – Related Party” and “Advances payable to related party.”
During the three months ended April 30, 2021 and 2020, we recognized revenue of $11,553 and $3,036, respectively, related to the sales of CBD products. We are continuing to grow our customer base with the goal of increasing sales.
We recognized general and administrative expenses of $102,869 and $50,531 for the three months ended April 30, 2021 and 2020, respectively. The increase is related is primarily related to increased tools, equipment and marketing expense related to increasing our level of operations. .