Amfil Technologies Inc (FUNN)

[grtnative]

Cost of Sales should include most of the Payroll Related Expenses.
Ie. the cost of cooks and servers required to directly facilitate the sales.
I assume on the landscaping side, that the rocks do not move themselves.

There might be an argument that their is a thin layer of management payroll and perhaps some bookkeeping resources that are not directly tied to sales, but that also should be rationalised.

So if you add the Payroll to Cost of Sales like one should, it is clear that there never has been a FUNN gross profit, or a profit of any kind.

Excluding payroll from cost of sales fools nobody.

While one is at it, also include rents in Cost of Sales. There needs to be a kitchen and seats for people to sit in to play those games. I know we pay for some office space where sales do not occur but most of the rent cost is for the restaurants.

It’s like saying that a $12 burger only has a cost of $4 (COG only for the food) - hence $8 profit.