Clarification on Revenue Recognition

[Jacmar]

Dear investors,

Products are generally shipped Freight on Board (FOB) from the Company’s warehouse, at which time risk of loss and title passes to the purchaser.

Does this indicate that once the products leave the warehouse of the seller, the risk of loss and title would be transferred to the purchaser?

Thanks in advance!

What you say is incorrect. the title passes to the purchaser only when the goods is on board either a ship or plane. from your w/h to the port/airport, it's still the seller's title and responsibility. for e.g if the goods was hijacked on the way to the port/airport, then the loss is on the seller and not the purchaser.