OWC Pharmaceutical Research Corp (OWCP)

[mariosmack]

The fact that R&D costs are low does not mean that they should spend that little on it. It only means that they can get a lot more done for the same price. If they had spent double that amount, they could have examined the product a little bit better, assuming that it even exists. They could revise the product for defects or problems. The extra money could be used to buy better lab equipment. There is always room for improvement here.

To say that the relatively low R&D costs justifies the extremely low R&D spending is basically saying that if they spent a bit more, it would not have grown the company and that is false.

Moreover, it does not explain the fact that R&D spending is decreasing every year while administrative expenses are increasing simultaneously. If OWCP is diligently looking for ways to decrease R&D costs, then they should diligently look for ways to decrease administrative expenses. If they cannot do that, then they should give a breakdown of that category. We should know where exactly the admin expenses are going. If they say something like "During the year ended December 31, 2016, we incurred a net loss of $2,287,329 due principally to general and administrative expenses", then it makes perfect sense to give us the information that we want. They are obviously giving us only the information that they are required to. They could care less about shareholders.