| REVENUE RECOGNITION |
NOTE 3 – REVENUE RECOGNITION
In accordance with FASB
ASC 606, Revenue from Contracts with Customers, we determine revenue recognition through the following steps:
| (1) | Identify
the contract with a customer |
| |
(2) |
Identify the performance obligations in the contract |
| |
(3) |
Determine the transaction price |
| |
(4) |
Allocate the transaction price to each performance obligation in the contract |
| |
(5) |
Recognize revenue when each performance obligation is satisfied |
The Company’s main source of revenue is
comprised of the following:
| |
● |
Training-GSCG offers a Stem Cell & Exosomes Certification Program where physicians attending these training sessions will take advantage of a full review of stem cell biology, characterization and regenerative properties of cells and cell products, cytokines and growth factors and how they can be applied in a clinic setting. The physicians will pay for the training sessions upfront and receive all the material and certificate upon completion of seminar. Completion of the seminar is when control is transferred and when revenue is recognized. |
| |
● |
Products-Physicians can order products through GSCG, which includes EC Certificate from Institute for Testing and Certificating, Inc. Products are paid for upfront and shipped from GSCG directly to physicians or picked up physicians at seminars or training events. Transfer of control is when the product is shipped or picked up at seminars or training events, which is when revenue is recognized. |
| |
● |
Equipment- Physicians can order equipment through GSCG, which includes a warranty from manufacture of equipment. Equipment is paid for upfront and shipped from manufacture directly to physicians or shipped from GSCG to physicians. Transfer of control is when the equipment is shipped, which is when revenue is recognized. |
| ● | Patient Procedures - Patient procedures are the treatments
GSCG is offering at its Cancun clinic. Once the patient agrees with the treatment plan and estimate, the procedure is scheduled
with a deposit. The procedure can be cancelled up to 21 days from scheduled treatment date with a 50% refund of deposit, which is when
deposit is recognized as revenue. The transfer of control is when the procedures are completed, which is when revenue is recognized. |
The Company recognizes revenue when it satisfies
a performance obligation by transferring control over a product to a customer or as services are performed. Revenue is measured based
on the consideration the Company receives in exchange for those products
The following table presents the Company’s
revenue by product category for the six months ended June 30, 2025, and 2024:
| | |
For the Six Months Ended
June
30, | |
| | |
2025 | | |
2024 | |
| Training | |
$ | 279,885 | | |
$ | 267,827 | |
| Product supplies | |
| 1,030,089 | | |
| 769,237 | |
| Equipment | |
| 8,435 | | |
| 102,060 | |
| Patient procedures | |
| 1,029,450 | | |
| 471,239 | |
| Total revenue | |
$ | 2,347,859 | | |
$ | 1,610,363 | |
Listed below are the revenues, cost of revenues,
gross profits, assets and net loss by Company:
| | |
For the Six Months Ended | |
| | |
June 30, 2025 | |
| | |
Global Stem
Cells Group | | |
Regenerative
Medical
Technology
Group | | |
Total | |
| Revenue | |
$ | 2,347,859 | | |
$ | - | | |
$ | 2,347,859 | |
| Cost of revenue | |
| 818,133 | | |
| - | | |
| 818,133 | |
| Gross profit | |
$ | 1,529,726 | | |
$ | - | | |
$ | 1,529,726 | |
| Gross Profit % | |
| 65.15 | % | |
| 0.00 | % | |
| 65.15 | % |
| | |
| | | |
| | | |
| | |
| Net loss | |
$ | (7,579 | ) | |
$ | (2,058,246 | ) | |
$ | (2,065,825 | ) |
| Assets | |
$ | 2,666,976 | | |
$ | 1,819,853 | | |
$ | 4,486,828 | |
|