American Cannabis Company Inc (AMMJ)

[iwant1mil]

Although Net Loss increased sligthly, sales went up 362%. Strong sales is a good sign that this company is on the right track and could begin attracting major investors. Then we'll see the pps heading back to where it should be.
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THREE MONTH PERIOD ENDING SEPTEMBER 30, 2007 AS COMPARED TO THREE MONTH PERIOD ENDING SEPTEMBER 30, 2006

On a consolidated basis, the Company had gross sales totaling $106,068 for the period ending September 30, 2007, compared with $22,929 in gross sales for the same period ending September 30, 2006. This represented an increase of $83,139 or 362.6% in gross sales from the year before.

The Company incurred a net loss of $470,753 for the three-month period ended September 30, 2007, compared with a net loss of $431,216 for the same period ended September 30, 2006. This represents an increase of $39,537 or 9.2% from the same period ending September 30, 2006. The increase in net loss is primarily due to increased costs and expenses related to the Company's efforts to expand its business.

The Company's gross profit margin for the period ending September 30, 2007 was 85.7%, or $90,924. Gross profit margin for the period ending September 30, 2006 was 91.1% or $20,895. The Company's cost of products sold for the periods ending September 30, 2007 and 2006 was $15,144 and $2,034, respectively. The Company expects product cost as a percentage of gross sales to remain stable.

Consulting fees totaled $7,500 and $35,000 for the periods ending September 30, 2007 and 2006, respectively. This represented a decrease of $27,500 from the prior year due to a reduction of certain outside professionals used by the Company. Marketing costs totaled $44,355 and $60,701 for the periods ending September 30, 2007 and 2006, respectively. This represented a decrease of $16,346 from the prior year. Selling, general and administrative expenses incurred by the Company, were $245,802 for the three month period ended September 30, 2007, compared with $159,318 for the same period ended September 30, 2006. This represented an increase of $86,484 or 54.3% from the prior year. These increases are primarily attributable to additional expenditures related to the Company's increased efforts to increase sales and its presence in the migraine market.