For the Three Months Ended March 31, 2016 Compared to the Three Months Ended March 31, 2015
The Company generated $367,837 in revenue for the three month period ended March 31, 2016, which compares to revenue of $555,289 for the three month period ended March 31, 2015. Our revenues decreased during the three month period ended March 31, 2016 due to decreased sales of our services to our current customers during this period.
Cost of sales for the three month period ended March 31, 2016 was $127,130, which compares to cost of sales of $324,483 for the three month period ended March 31, 2015. Our revenues decreased during the three months ended March 31, 2016, and as our sales revenue decreased, our cost of sales correspondingly decreased.
Operating expenses, which consisted solely of general and administrative expenses, and consulting and professional fees for the three month period ended March 31, 2016, were $152,526. This compares with operating expenses for the three month period ended March 31, 2015 of $151,684. The major components of general and administrative expenses include accounting fees, legal and professional fees.
As a result of the foregoing, we had net income of $84,780 for the three month period ended March 31, 2016. This compares with net income for the three month period ended March 31, 2015 of $71,737.
In its audited financial statements as of December 31, 2015, the Company was issued an opinion by its auditors that raised substantial doubt about the ability to continue as a going concern based on the Company's current financial position.
Our ability to achieve and maintain profitability and positive cash flow is dependent upon our ability to successfully develop and market our products and our ability to generate revenues.
Liquidity and Capital Resources
As of March 31, 2016 we had cash or cash equivalents of $4,265. As of December 31, 2015, we had cash or cash equivalents of $18,842.
We believe that with our existing cash flows we have sufficient cash to meet our operating requirements for the next twelve months due to the fact that we believe our revenue will increase throughout the year. We believe that the amount of revenue we are generating will allow us to meet our operating requirements during the next twelve months. If our revenue is not sufficient to allow us to meet our cash requirements during the next twelve months, the company may need to raise additional funds through the sale of its equity securities.
We cannot guarantee that we will be successful in generating sufficient revenues or other funds in the future to cover these operating costs. Failure to generate sufficient revenues or additional financing when needed could cause us to go out of business.
Net cash provided by operating activities was $28,423 for the three month period ended March 31, 2016. This compares to net cash provided by operating activities of $69,613 for the three month period ended March 31, 2015. This change is due to an increase in accounts payable, which offset part of our net income of $84,780 for the three months ended March 31, 2016, as compared to our net income of $71,737 for the three months ended March 31, 2015.
Cash flows from investing activities were $0 for the three month period ended March 31, 2016 and 2015. We do not anticipate significant cash outlays for investing activities over the next twelve months.