Our total operating expenses for the three months ended October 31, 2015 of $522,325 consisted of $504,331 of selling, general and administrative expenses, $16,000 of professional fees, and $1,994 of amortization and depreciation expenses. Our general and administrative expenses consist of bank charges, telephone expenses, meals and entertainments, computer and internet expenses, postage and delivery, office supplies and other expenses.
Net Loss
Our net loss decreased by $358,253 to $420,649 for the three months ended October 31, 2015 from $778,902 for the three months ending October 31, 2014. The decrease in net loss compared to the prior period is primarily a result of the decrease in operating expenses of $296,508 and the increase in gross profit of $63,471.
Six Months Ended October 31, 2015 Compared to Sic Months Ended October 31, 2014
Revenue
Our revenue from continuing operations for the six months ended October 31, 2015 was $1,254,649 compared to $181,261, an increase of $1,073,388 or approximately 592%, for the six months ended October 31, 2014. This increase is primarily a result of increased sales efforts for our products. Revenues consist primarily of results from the sales of the electronic vaporisers, the components for vaporisers and related accessories.
Cost of Goods Sold
Our cost of goods sold for the six months ended October 31, 2015 was $1,026,029 compared to $85,484 for the six months ended October 31, 2014. The increase is primarily due to an increase in sales and the purchase of better quality products with higher costs.
Gross Profit
Our gross profit for the six months ended October 31, 2015 was $228,620 compared to $95,777 for the six months ended October 31, 2014. The gross profit of $228,620 for the six months ended October 31, 2015 represents approximately 18% as a percentage of total revenue. The gross profit of $95,777 for the six months ended October 31, 2014 represents approximately 53% as a percentage of total revenue. This decrease in the gross profit is primarily attributed to the higher costs of the better quality products.
Operating Expenses
Our operating expenses decreased by $628,326 to $1,312,417 for the six months ended October 31, 2015, from $1,940,743 for the six months ended October 31, 2014.
The decrease was primarily due to the decrease in professional fees of $1,755,573, offset by an increase in selling, general and administrative expenses of $1,126,435 and an increase in amortization and depreciation of $812.
Our total operating expenses for the six months ended October 31, 2015 of $1,312,417 consisted of $1,288,672 of selling, general and administrative expenses, $19,681 of professional fees, and $4,064 of amortization and depreciation expenses. Our general and administrative expenses consist of professional fees, bank charges, telephone expenses, meals and entertainments, computer and internet expenses, postage and delivery, office supplies and other expenses.
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