Revenue increased 112%, Profit increased $94,844, and Operating Expenses decreased 45% is a clear sign that business is growing at a very fast rate!
The only problem for this 3rd qtr was due to non-operating expenses that had to write off due to their convertible debt, which took big hit. Going forward, we know this will non-operating expense will greatly improve and start digging themselves out of the debt issue. For this 3rd qtr the non-operating expense was the only big negative issue that is now out of the way. As for the business itself, it continues to grow at a rapid pace. Can't wait until the CBD products hit the shelf very soon. Cheers!
Total revenues generated from the sales of Surgex?, Bikini Ready?, SlimTrim? and Martha Stewart Essentials? for the quarter ended September 30, 2014 totaled $430,242 an increase of 112% from the quarter ended September 30, 2013 which totaled $203,348. The primary reason for the increase was due to the Company's distribution of Martha Stewart Essentials and the newly formulated Surgex brand along with the introduction of Bikini Ready and SlimTrim to the retailers during the quarter ended September 30, 2014. The introduction of these brands continues to show growth into the fourth quarter of 2014.
Gross profit for the quarter ended September 30, 2014 amounted to $70,075 for a 16% gross margin. Gross profit increased $94,844 for the quarter ended September 30, 2014 compared to a negative gross margin of $24,769 for the quarter ended September 30, 2013. The increase in gross profit is a result of higher sales in the quarter ended September 30, 2014.
After research and development cost and selling, general and administrative expenses of $1,304,661, the Company realized an operating loss of $1,234,586 for the quarter ended September 30, 2014. Operating losses of $1,234,586 decreased $1,005,567 or 45% as compared to the third quarter of 2013 operating loss of $2,240,153
Non-operating expense totaled $3,182,257 for the quarter ended September 30, 2014 an increase of $2,740,239 as compared to an expense of $442,018 for the quarter ended September 30, 2013. The increase in non-operating expense of $2,740,239 was due to the decrease in accretion of debt discount in the amount of $113,944 and an increase in loss associated with the fair value of the derivative instruments issued with the convertible debt in the amount of $1,196,000. There was a loss of $2,043,000 from equity instruments issued with debt greater than debt carrying amount. There was an decrease in interest expense of $384,817 due to an over accrual.
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