Amplitech Group Inc (AMPG)

[OBrien]

10Q is out....$505K in sales with $155K net income

Sales increased by $125,777 or approximately 33%, when comparing sales for the three months ended June 30, 2016 of $504,565 to sales for the three months ended June 30, 2015 of $378,788. This increase was directly related to an increase in production capacity that resulted from more efficient outsourcing of assembly on a certain large foreign sales order.

Cost of Goods Sold and Gross Profit

Cost of goods sold as a percentage of sales decreased by $42,766 or 22% for the three months ended June 30, 2016 compared to the three months ended June 30,2015. The decrease is directly related to an increase in production capacity that resulted from more efficient outsourcing of assembly on a certain large foreign sales order with a higher gross margin. This resulted in a corresponding 91% increase in gross profit as a percentage of sales, or $168,543 when comparing the first three months of 2016 gross profit of $354,440, to the first three months of 2015 gross profit of $185,897.

General and Administrative Expenses

General and administrative expenses increased from $166,965 for the three months ended June 30, 2015 compared to $194,855 for the three months ended June 30,2016, an increase of $27,890. The focus during the three month period ended June 30, 2016 was to concentrate on advertising for the annual trade show held in May 2016. In addition, the company incurred equipment lease and repair expenses for damages sustained during the relocation.

Income (Loss) From Operations

As a result of the above, the Company had net income from operations of $159,585 for the three months ended June 30, 2016 compared to net income fromoperations of $18,932 for the three months ended June 30, 2015, an increase of $140,653 or 7.43%.