Form 10KSB for EFOODSAFETY COM INC
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7-Aug-2007
Annual Report
ITEM 6. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION.
Management's Discussion And Analysis Of Financial Condition And Results Of Operations
Year Ended April 30, 2007
Sales
Our revenues from operations for the year ended April 30, 2007 were $1,169,658. Our revenues from operations for the year ended April 30, 2006 were $537,038. The increase in our revenues of $632,620 was due to our increasing sales of Cinnergen, which are expected to continue to increase in 2008.
Research and Development
During the year ended April 30, 2007, we incurred research and development expenses of $133,835 compared to $119,008 as the Company continued to refine and develop its products related to Knock-Out Technologies and MedElite. We do not anticipate any material increase in such expenses in 2008.
Selling, General and Administrative Expenses
A summary of our Selling, General and Administrative expenses is as follows:
During the year ended April 30, 2007, the Company incurred sales and marketing expense of $1,409,645, compared to sales and marketing expense of $1,194,043 during the year ended April 30, 2006. The increase in sales and marketing expense is primarily due to the increasing marketing and promotion of our products. We expect such expense to increase in 2008 along with increasing revenues from sales as a result of continuing sales and marketing efforts.
Consulting expense decreased to $2,156,629 from $5,442,447 as a result of our issuing less stock for services. We do not anticipate any material increase in such expense in 2008.
General and administrative expenses increased to $398,044 from $291,691 primarily due to operations of having four subsidiaries in 2007 rather than three subsidiaries in 2006. We do not expect any material increase in such expenses in 2008.
Interest Expense
Interest expense of $35,088 and $62,674 were incurred during the years ended April 30, 2007 and 2006, respectively. The amount of interest expense decreased substantially as the company eliminated virtually all its debt by issuing stock.
As a result, we do not expect any material increase in such expense in 2008.
Liquidity and Capital Resources
As of April 30, 2007, we had working capital of $3,314,325. As a result of our operating losses during the year ended April 30, 2007, we generated a cash flow deficit of $391,956 from operating activities. We utilized cash flows in connection with investing activities of $693,995 during the year ended April 30, 2007. We met our cash requirements for the year ended April 30, 2007 with sales of common stock for $1,085,750.
We have no off-balance sheet arrangements, special purpose entities, financing partnerships or guarantees.
