MOMO'S BREAKOUT BOARD

[Magnum7419]

? 8k makes one sick ?

"Six Months Ended June 30, 2019 Compared to the Six Months Ended June 30, 2018



Net Sales. Net sales for the six months ended June 30, 2019 were $92,692,830 compared to $9,624,790 for the six months ended June 30, 2018. This significant $83,068,040 increase largely attributable to the sales of our silencer/muffler. No sales of this product were made during the six months ended June 30, 2018.



Cost of Sales. Cost of sales for the six months ended June 30, 2019 increased $78,938,210 to $86,445,546 compared to $7,507,336 for the six months ended June 30, 2018. Costs of sales were largely comprised of costs associated with materials used in the manufacturing of our products, which totaled $58,105,625 for the six months ended June 30, 2019, which were $3,861,599 for the six months ended June 30, 2018. This significant increase is largely due to the increase in sales for the six months ended June 30, 2019, as described above.



Gross Profit. As a result of the foregoing, gross profits for the six months ended June 30, 2019 increased $4,129,830 to $6,247,284 for the six months ended June 30, 2019 from $2,117,454 for the six months ended June 30, 2018.



Sales and Marketing Expenses. Sales and marketing related expenses for the six months ended June 30, 2019 increased 1,152% to $62,120 from $4,963 for the six months ended June 30, 2018. We began selling our silencer/muffler products and sales and marketing activity in relation to our 3D Smartphone technology, and commenced initial marketing of our 3D TV technology. In connection with the launch of this product, we found it necessary to bring on additional outside staff to market and train our new clients in the use of this new product."

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