Bots Inc (BTZI)

[lesgetrich]

This is probably why they increased the price of VCIG from $2 to $3 in July then $5 in August and are now selling MCIG for $15. From the 10-Q...

Our total operation expenses for the three months ended July 31, 2014 consisted of $15,416 of professional fees, $1,624 of travel expenses, $1,859 of amortization, $91,101 of general and administrative expenses and $1,044,956 of share-based compensation. Our general and administrative expenses consist of bank charges, advertising and promotion, rent, computer and internet expenses, postage and delivery and other expenses. For the three months ended July 31, 2013 our incurred total operation expenses consisted of $9,225 of professional fees, $1,294 of amortization, and $9,068 of general and administrative expenses.

Total operating expenses for mCig, Inc. for the three months ended July 31, 2014 were $1,121,910 and consisted of $10,600 of professional fees, $1,626 of amortization, $1,624 of travel, $63,104 of general and administrative expenses and $1,044,956 of stock based compensation. Total operating expenses for VitaCig, Inc. for the three months ended July 31, 2014 were $33,046 and consisted of $4,816 of professional fees, $233 of amortization and $27,997 of general and administrative expenses. The general and administrative expenses consist of bank charges, computer and internet expenses, postage and delivery and telephone expenses.

I'm not worried about the stock based compensation since this was paid for from Paul's shares...

As of July 31, 2014, Mr. Paul Rosenberg cancelled 5,040,658 shares of common stock from his personnel holdings in the Company and issued on behalf of the Company for services rendered by employees and consultants. The total amount of these shares, included as part of the Company’s equity roll-forward equaled $2,680,474.

When you think about it, perhaps management is going about this the right way. They initially miscalculated their distribution and operation expenses and how much margin they would need to cover them. If they're outsourcing their order fullfillment, this is probably a large part of the expense. Had they intitially gone with a full scale retail program it would have probably magnified their loss. With the increased pricing they should be able to go forward with a profit. However, they do need to get a retail program in place ASAP. JMO