RESULTS OF OPERATIONS
Six Months Ended June 30, 2010 Compared to Six Months Ended June 30, 2009
Revenue – For the six months ended June 30, 2010, the Company had revenue from The
Answer® of $328,089 compared to the $239,478 of revenue generated for the six months ended
June 30, 2009, an increase of $88,611 or 37%. The increase in revenue is a result of increased unit
sales. Unit sales for the first six months of 2010 were 758,524 compared to unit sales of 492,600
for the first six months of 2009.
Gross Profit – For the six months ended June 30, 2010, the Company had a gross profit
of $114,591 compared to a gross profit of $93,478 for the six months ended June 30, 2009, an
increase of $21,113 or 22.6%. The increase in gross profit is a result of increased revenue as a
result of increased unit sales.
Operating Expenses – For the six months ended June 30, 2010, the Company had total
operating expenses of $803,632 representing a decrease of $195,488 or 24.3%, compared to the six
months ended June 30, 2009. This decrease was driven mostly by reduced public relations
expenses.
Other Income/(Expense) – Total other income/(expense), which represents the sum of
interest income, interest expense and other income or expense, for the six months ended June 30,
2010 was ($33,250) compared to ($38,767) for the six months ended June 30, 2009. This decrease
is due to lower interest rates on the term loan.
Net Loss – For the six months ended June 30, 2010, the Company had a net loss of
$722,291 representing a decrease in net loss of $222,118 or 23.5% compared to the six months
ended June 30, 2009. The decrease in net loss was due to increased gross profit driven by increased
unit sales.
