Medbox Completes Financial Audit Company is cleared to file Form 10 to become fully reporting with the SEC
HOLLYWOOD, Calif., April 2, 2013 /PRNewswire/ -- Medbox, Inc. (OTC Markets: MDBX) (www.medboxinc.com), announced it has cleared a financial audit of its prior 2 years of operations. Q Accountancy Corporation of Irvine, California headed up the audit as a public company accountancy and oversight board (PCAOB) certified firm that specializes in complex audits of this size and scope.
The audit was completed and the company learned a great deal on keeping tabs of its books and records on a going forward basis to assist in upcoming filings of K's and Q's that are a part of being a fully reporting SEC company. To assist in that regard, the company has hired a seasoned full-time CFO set to commence employment April 15, 2013, and will be formally announced in an upcoming press release.
Of the $2,397,000 in receivables owed, $345,000 was written off by Medbox as discounts that were voluntarily given to the clients in question for materials and labor expended by said clients, that the company would have had to expend anyway, in pursuit of finalizing the contracted building of the dispensing locations. Those items were deducted from revenue at the discretion of the Auditor as opposed to being booked as revenue and offset as expenses, leaving a total receivables balance of $2,052,000. Of that amount, $673,250 was labeled as deferred income and not counted as revenue for the period ending 12/31/12. Between the $345,000 in voluntary discounts given to clients and the $673,250 in deferred revenue, Medbox's 2012 revenue was reduced to $3,525,636. However, Medbox reports that all $673,000 in deferred revenue was paid in Q1 2013 and as a result added to that quarter's revenue figures making Q1 2013 revenue well in excess of $2 million - a company record. In addition, the clients whom Medbox gave discounts have reengaged the company for additional equipment and services exceeding $350,000 booked in Q1 2013 to be paid in Q2 2013.
In addition, $1,535,000 in total receivables owed by Medbox clientele was paid in Q1 2013. Medbox anticipates that all receivables owed prior to March of 2013 will be paid in full by the end of April 2013.
"We are absolutely thrilled that we have cleared this proverbial hurdle in our company's history," stated Dr. Bruce Bedrick, CEO of Medbox, Inc. "We anticipate filing our Form 10 by Friday and 60 days thereafter the filing shall be deemed effective. We want to thank all of our supporters that helped us in becoming a viable public company."
The audit will be uploaded to the filings section of the MDBX page of the OTC Markets site this week. The financial statements, auditor's footnotes, and cover letter will be filed with the SEC with the Form 10. In the meantime, audited financial statements can be found at the following link on the company's website:
About Medbox, Inc:
Medbox is a leader in the development, sales and service of automated, biometrically controlled dispensing and storage systems for medicine and merchandise. Medbox has offices throughout the world, including New York, Arizona, Connecticut, Massachusetts, Tokyo, London and Toronto, and has their corporate headquarters in Los Angeles.
Medbox provides their patented systems, software and consulting services to pharmacies, dispensaries, urgent care centers, drug rehab clinics, hospitals, prison systems, hospice facilities, and medical groups worldwide.
Medbox, Inc. is a publicly traded company, and is quoted on the OTC Markets, ticker symbol MDBX.
For more information on Medbox, please contact the Medbox Investor Relations Department at (800) 762-1452 or go online to www.medboxinc.com.
SOURCE Medbox, Inc.