Note 4 - Revenue Recognition

3 Months Ended

Mar. 31, 2018

Notes to Financial Statements

Revenue from Contract with Customer [Text Block]

4. Revenue Recognition . In May 2014, the FASB issued ASU 2014 - 09, Revenue from Contracts with Customers , and issued subsequent amendments to the initial guidance in August 2015, March 2016, April 2016, May 2016, and December 2016 within ASU 2015 - 14, ASU 2016 - 08, ASU 2016 - 10, ASU 2016 - 12 and ASU 2016 - 20, respectively. The core principle of this new revenue recognition guidance is that a company will recognize revenue when promised goods or services are transferred to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The new guidance defines a five -step process to achieve this core principle. The new guidance also requires more detailed disclosures to enable users of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The new guidance provides for two transition methods, a full retrospective approach and a modified retrospective approach.

On

January 1, 2018,

the Company adopted ASC Topic

606

using the modified retrospective method with

no

impact to the opening retained earnings and determined there were

no

changes required to its reported revenues as a result of the adoption. An analysis of contracts with customers under the new revenue recognition standard was consistent with the Company's current revenue recognition model, whereby revenue is recognized primarily on the date products are shipped to the customer. The Company has enhanced its disclosures of revenue to comply with the new guidance.

Results for reporting periods beginning after

January 1, 2018

are presented under ASC Topic

606,

while prior period amounts were

not

adjusted and continue to be reported in accordance with ASC Topic

605,

"Revenue Recognition." 

The Company's primary source of revenue is the sale of products within

three

business units: the Medical, Pharmaceutical, and Consumer Product Divisions.

The Medical division provides equipment to metabolic treatment centers in Taiwan. The Consumer Product division provides nutraceuticals and food supplements in Asian markets. Revenues are recognized for both these revenue streams when an agreement is in place, the price is fixed, title for product passes to the customer or services have been provided and collectability is reasonably assured, which is generally upon delivery to the customer. Revenues are recorded net of sales taxes.

The Pharmaceutical Division will exploit the Company’s intellectual property.

All revenue recognized during the

three

month period ending

March 31, 2018

was in the Consumer Product division.