Replies to post #16278 on Fuse Science Inc (DROP)

[infoseeker11]

What is funny is that if the other Poster from Yahoo had a clue about SGA or took the time to break down the SGA they probably would not have even written about. Moreover, SGA expenses compared to 2011 are irelevant as there was no business at that time. The current SGA should be seen as a baseline as it is the first real expense period as it relates to "Launching" their new products.

To post it here also means someone else needs an SGA education.

http://www.ehow.com/info_7793642_sga-mean-financial-statement.html

Fuse Science breakdown for the quarter.

Marketing - $733,516

The increase in marketing expense of $733,516 for the three months ended March 31, 2012, from $0 for the three months ended March 31, 2011 is due to the Company’s effort to market its products which is heavily influenced by athlete endorser relationships designed to drive brand awareness and trial. During the period ended March 31, 2012, the Company entered in to a distribution and marketing agreement with Mission which included comprehensive marketing services and heavy commercialization efforts during the first 10 months of the distribution and marketing agreement. The Company paid Mission approximately $650,000 which is therefore being amortized over 10 months. Also included is other marketing cost relating to the launch of Enerjel™ and non-cash payments to endorsers of $289,147.

Sounds like money well spent on the Launch of Multiple products.

Non-Cash payments are options given to the Endorsers. They have to account for them "as an expense" when they are given. When they are exerised you will see a CREDIT on the expense line for the same amount.

Professional Fees - $563,780

Professional fees expense increased by $563,780 for the three months ended March 31, 2012, from $0 for the three months ended March 31, 2011. This increase was due to the Company’s requirements for legal, accounting and consulting services related to the Company’s ongoing day-to-day business dealings and execution of its business plan, including, accounting, financial reporting and SEC compliance. Professional fee expense increase includes $84,057 in non-cash compensation.

Fixed amounts typical of any business.

Payroll - $423,038

Payroll expense increased by $279,038 to $423,038 for the three months ended March 31, 2012 from $144,000 for the three months ended March 31, 2011. The increase was due to an increase in personnel headcount. The payroll increase includes $192,791 in non-cash compensation.

There was only 1 employee on the books in Q1 of 2011. The $144K then was actually Stock options granted to Aiten Zacharin. No one else was actually employed at that point by Fuse.

Additionally, the actual expense was $230,247 as $192,791 was non-cash options granted which they will recoup this expense when they are exercised.

Oh, and it also appears that they did not take their full pay as well considering the amount. (You can do the math here if you choose.)

Other Expenses - $153,849

Other general and administrative expense increased from $30,139 in the three months ended March 31, 2011 to $153,849 in the three months ended March 31, 2012. This increase is primarily a result of the increased travel to third party manufacturing plant, increased investor relations activities and reporting as well as expenses associated with the Company’s fund raising activities and expenses related to other early stage development activities of the business.

For one to think the SGA is out of line considering how the money was spent clearly shows they did not take the time (go figure) to look at the breakdown of expenses and how the money is being utilized to market and launch their upcoming products.