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For the
three
months ended
March 31
, 20
16
compared t
o the
three
months ended
March 31, 2015
.
Discontinued Operations
The Company is reporting results of operations of Bulova Technologies Ordnance Systems LLC (BTOS) as discontinued operations for the three months ended March 31, 2016 and 2015.
In October 2012, Bulova Technologies Ordnance Systems LLC sold substantially all of its assets to an unrelated party. The purchaser performed certain contracts remaining in the name of Ordnance as a subcontractor for the balance of the year ended September 30, 2013 and for a portion of the year ended September 30, 2014. The effect was a very small gross profit as most of the contract revenues were passed through to the purchaser for fulfillment. .
Ordnance did not have any revenue for the three months ended March 31, 2016 and 2015.
Ordnance did not incur any costs of revenues for the three months ended March 31, 2016 or 2015.
Ordnance did not realize any gross profit for the three months ended March 31, 2016 or 2015.
Operating expenses and interest for the discontinued operations of Ordnance for the three months ended March 31, 2016 of $467,135 is a decrease of $346,624 when compared to operating expenses and interest for the three months ended March 31, 2015 of $120,511, and is due primarily to an interest expense recorded pursuant to a forbearance agreement in the amount of $450,000.
Ordnance did not have any other income for the three months ended March 31, 2016 as compared to other income of $398,148 for the three months ended March 31, 2015.
Continuing Operations
Revenue for continuing operations for the three months ended March 31, 2016 of $4,987,243 is an increase of $4,500,957 when compared to the revenue for the three months ended March 31, 2015 of $486,286, and is primarily due to the acquisition of the Transportation businesses in January 2016. Revenues from the new entities which only constitute two months of activity in the quarter amounted to approximately 4.3 million in new sales.
Cost of revenues for continuing operations for the three months ended March 31, 2016 of $3,612,297 is an increase of $3,203,921 when compared to the cost of revenues for the three months ended March 31, 2015 of $408,376, and is primarily due to the acquisition of the Transportation businesses in January 2016, and consists of the tractor, trailer and driver expenses associated with the transportation services.
Gross profit for continuing operations for the three months ended March 31, 2016 of $1,374,946 is a large increase of $1,297,036 when compared to the gross profit for the three months ended March 31, 2015 of $77,910 for the reasons referred to above.
Selling and administrative expenses for continuing operations for the three months ended March 31, 2016 of $1,638,286 is an increase of $758,360 when compared to selling and administrative expense for the three months ended March 31, 2015 of $879,926. Stock based compensation if $112,500 is a decrease of $1,318,999 when compared to stock based compensation for the three months ended March 31, 2015 of $1,431,499.
Interest expense for continuing operations for the three months ended March 31, 2016 of $449,698 is an increase of $241,765 when compared to interest expense of $207,933 for the three months ended March 31, 2015. This increase in interest expense is a result of borrowing on unfavorable terms to facilitate operations, as well as increase in new debt.
For the
six
months ended
March 31
, 20
16
compared t
o the
six
months ended
March 31, 2015
.
Discontinued Operations
The Company is reporting results of operations of Bulova Technologies Ordnance Systems LLC (BTOS) as discontinued operations for the six months ended March 31, 2016 and 2015.
In October 2012, Bulova Technologies Ordnance Systems LLC sold substantially all of its assets to an unrelated party. The purchaser performed certain contracts remaining in the name of Ordnance as a subcontractor for the balance of the year ended September 30, 2013 and for a portion of the year ended September 30, 2014. The effect was a very small gross profit as most of the contract revenues were passed through to the purchaser for fulfillment. .
Ordnance did not have any revenue for the six months ended March 31, 2016 and 2015.
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