December 31, 2009 compared to December 31, 2008
Since the acquisition of SWK, Inc., in June 2004, all revenues reported by Trey are derived from the sales and service of Sage Software and MAPADOC products to various end users, manufacturers, wholesalers and distribution industry clients located throughout the United States, along with network services provided by the Company.
Revenues for the year ended December 31, 2009 decreased $309,647 (4%) to $7,414,648 as compared to sales of $7,724,295 for the year ended December 31, 2008. These sales were all generated by the Company’s operating subsidiary, SWK Technologies (“SWKT”). A decrease in revenues associated with software sales and maintenance services was partially offset by an increase in revenues related to programming and network. Management continues to focus on marketing and sales across all its product lines. However, due to the current economic downturn, there can be no assurance that sales will increase.
The gross profit for the year ended December 31, 2009 increased $311,645 (11.4%) to $3,043,542 as compared to a gross profit of $2,731,897 for the year ended December 31, 2008. The increase in gross profit in primarily attributed to the change in sales mix. The mix of products being sold by the company changes from time to time, and sometimes causes the overall gross margin percentage to vary. Sales of the larger Sage Software products carries lower gross margin percentage as the relative discount percentage from the supplier decreases. The increase in gross profit as a percentage of sale sin 2009 in primarily attributed to the lower sales. Gross profit as a percentage of sales was 41% for the year ended December 31, 2009 as compared to 35.4% for the year ended December 31, 2008.
Total operating expenses decreased $13,927 (0.4%) to $3,295,663 for the year ended December 31, 2009 as compared to $3,309,590 for the year ended December 31, 2009. This decrease is mainly attributed to a decrease in general and administrative salaries.
Total other income (expense) for the year ended December 31, 2009 was an expense of $1,250,141 as compared to an expense of $908,705 for the year ended December 31, 2008, an increase of $341,436. The increase in other expenses primarily reflects an increase in debt conversion discount and an increase in the loss on revaluation of derivative.
Net loss for the year ended December 31, 2009 was $1,502,262 as compared to net loss of $1,486,398 for the year ended December 31, 2008.
Dilution of 400M shares
As of March 31, 2010 there were a total of 5,834,695,306 shares of Class A common stock outstanding.
CEO now owns a huge amount of the commons:
As of March 31, 2010, Mark Meller, our President, owned approximately 75% of our outstanding shares of our Class A common stock (assuming the conversion of outstanding debt into shares of Class A common stock and/or Class B common stock).
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A "meh" 10-K... increase in sales (product mix)=good, debt still killing the company and continuing to dilute. Interesting that Meller owns 75%;
75%/5.8B = 4.35B shares (2009). That means only 1.5B were held by outsiders in 2009, was Meller buying back for himself?
