If stock were pizza, Timmy would be set for life! These boys are sure loading up and giving themselves a nice ~15% annual raise to boot:
During the third quarter of 2018, the Company issued unregistered shares as follows: (i) 3,500,000 restricted shares to Tim Vance, the Company's CEO, in connection with the execution of a new 5 year employment agreement; and 2,000,000 restricted shares to Gary Woerz, the Company's CFO, in connection with the execution of a new 5 year employment agreement.
The April 30,2018 employment agreements calls for a 5 year term ending April 30, 2023, annual compensation of $98,000 per year for services as CEO, annual compensation of $57,200 per year for services as CFO.
During the quarter ended September 30, 2018, the CEO and CFO exercised all warrants previously granted under the 2013 Employment Agreements. The CEO received 2,500,000 shares of common stock and the CFO received 2,000,000 shares of common stock as a result of the cashless exercise. The options were fully expensed during the period from January 2013 through January 2018.
But here's what really jumps out. If you sell something for $10 but it costs you $20 to make it (or license it), how can this be profitable?
Our revenues for the nine months ended September 30, 2018 were $472,973, compared to $462,079 for the nine-month period ended September 30, 2017, representing an increase of $10,894 or approximately 2.36%. The increase in revenues was mainly due to purchase of content by new and existing customers.
Costs of sales for the nine months ended September 30, 2018 were $129,296, compared to $109,816 for the same period of the prior year. This increase was due the costs related to the licensing and royalty expense required to provide the subscription services and the additional cost associated with the increase in revenue.
