RESULTS OF OPERATIONS
Quarter ended September 30, 2004 compared to quarter ended September 30, 2003
During the quarter ended September 30, 2004, the Company incurred a net loss of $1,168,204 compared to a loss of $337,841 for the same quarter of 2003. The current loss is primarily due to the equity financing agreement that the company had in place during the quarter. Convertible debentures were converted at rates 50% below the market. Convertible debentures in the amount of $359,750 were converted and resulted in a financing cost of $1,070,133. Exclusive of these financing costs the Company would have had a loss of $98,071 compared to the loss of $337,841 for the same quarter of 2003. This decrease in loss is due to a major decrease in operating expenses.
Operating expenses were $94,095 and $454,490 for the quarters ended September 30, 2004 and 2003, respectively. The reduced expenses this quarter compared to the same quarter a year ago is due mainly to the companies restructuring to reduce its overhead by outsourcing some of the administrative functions.
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