If they take in the full amount and then pay some percentage of it to the supplier, isn't that just treating it as "cost of goods sold" the way you would accoun

If they take in the full amount and then pay some percentage of it to the supplier, isn't that just treating it as "cost of goods sold" the way you would account for a normal reselling arrangement like retail, wholesaling, etc.? I can see why the SEC might want them to change it, but it's not obvious to me that the only way you could come to this type of accounting is dishonesty. Am I missing something?