ADVANCE RECEIPTS AND DEFERRED REVENUE

6 Months Ended

Jun. 30, 2019

Deferred Revenue Disclosure [Abstract]

NOTE 12 – ADVANCE RECIPTS AND DEFERRED REVENUE

Our advance receipts and deferred revenue consists of:


	June 30, 2019		December 31, 2018
Deferred revenue – WeedMD	$	—	$	23,750
Advance receipts – Sale of Finished Products		271,340		—
	$	271,340	$	23,750

On June 9, 2014, we received 1,187,500 common shares and 3,000,000 warrants to purchase common shares of WMD in exchange for future consulting services and use of our intellectual property. We recorded the $893,750 fair value of these securities as deferred revenue and we recognized $150,000 of this amount as revenue during the period July 1, 2014 through December 31, 2014, based upon our initial three-year estimate of the service period involved. We delivered the consulting services and use of our intellectual property to WMD on a relatively consistent monthly basis during the four-year period January 1, 2015 through December 31, 2018. Accordingly, we recognized $15,000 of deferred revenue per month during that period. We recognized $0 and $45,000 of revenue applicable to this arrangement in the six months ended June 30, 2019 and 2018, respectively.

Payments received in advance of the delivery of finished products purchased by customers are recognized as advanced receipts. As of June 30, 2019 and December 31, 2018, we had $271,340 and $0.00, respectively, a of payments received from customers prior to the delivery of the respective finished products. Delivery of the finished products was completed in early July 2019.

United Cannabis Corp 10-Q