Before you hire new promoters, fire the ones you have! From 10q it looks like the cost of producing a part hasn't changed but even with a 50% reduction in, let's call it "admin" they are still way to top heavy for what they are producing. You know the line worker is goes into the fixed cost of your product. So if they aren't making parts they aren't incurring a cost ( layoff). But admin gets paid whether producton is going or not. Besides running the day to day operations, Admin has to sell product and the company. It looks like the day to day ops are ok, but sales and co promoting are not. I don't know how many workers they have, but whatever they have for sales and prof fees better pull their weight soon or they should look for someone else. You finish the thought here.....
GROSS LOSS
For the three months ended March 31, 2012, MWW's gross loss was $132,058 (75.7%) compared to gross loss of $39,205 (14.8%) for the three months ended March 31, 2011. MWW sold a greater percentage of its lower margin products in 2012 than in 2011. During the current period, our Revenues were insufficient to offset our overhead costs. MWW's gross profit margin is influenced by a number of factors and gross margin may fluctuate based on changes in the cost of supplies and product mix.
The primary components of cost of sales are direct labor and cost of parts and materials. The cost of parts and materials has been consistent from year to year.
OPERATING EXPENSES
Selling, general, and administrative expenses were $363,541 (208.3 % of revenues) in 2012 compared to $675,033 (254.4 % of revenues) during 2011. The decrease in costs is attributable to management’s stringent efforts to reduce overhead costs.
Significant components of operating expenses consist of professional fees, salaries, and impairment losses.