I am not sure why it is amusing? The interpretation is correct:
The background system is called NICS [1], and all information submitted to it is destroyed after 1 day. The system only outputs PROCEED or DENY to the FFL when someone is being checked for a firearms purchase.
1 - "Per Title 28, Code of Federal Regulations, Part 25.9(b)(1), (2), and (3), the NICS Section must destroy all identifying information on allowed transactions prior to the start of the next NICS operational day. If a potential purchaser is delayed or denied a firearm and successfully appeals the decision, the NICS Section cannot retain a record of the overturned appeal."
https://www.fbi.gov/services/cjis/nics/about-nics