Aquagold International Inc (AQUI)

[Lochan]

Increasing the profit margin means cutting costs. The first expense to get cut was Domingo's salary. I believe the other guys thought he wasn't pulling his weight.

Shipping is a significant expense, and I once calculated it was costing $.06 per bottle from Montreal to Shanghai. That may be reduced but probably not significantly.

A major expense at this stage is promotion, and without it, there is no branding of the product, so we can expect to see this continue to increase over the next few quarters. Still, I'd like to see the Company break even at some point during the course of 2010. You can only go on operating at a loss for so long.