DNAprint Genomics (DNAG)

[easymedicine]

how could I be a basher when all I do...........

is offer truths you and your peers seemingly prefer to overlook? Here, DNAP confesses they do not incorporate cost accounting in their management. That's a complete disaster waiting to happen, huh? I guess that's another element considered in the share price. But yet, they know of some costs. I think that odd how only a few costs are evident while others totally escape the picture. "we
began recording inventory since during the last half of 2004" just began recording inventory??????????? These guys are thieves or idiots.

http://xml.10kwizard.com/filing_raw.php?repo=tenk&ipage=3370094

While we continue to improve and refine our accounting systems, we currently do
not segregate product costs by product or service. At December 31, 2004, we
began recording inventory since during the last half of 2004, we were increasing
the amount of raw materials we have on hand. We have been and continue to be a
development stage company as described in Financial Accounting Standards Board
Statement No. 7. We continue to devote substantially all of our efforts to
initiating and developing our planned principal operations. We expect that our
pharmacogenomic products and services, once introduced, will be our major
revenue generator.

Management does not manage on a product cost basis at this time. Further,
management does not allocate resources based on product lines. For the most
part, personnel are not solely devoted to a product or a specific task. As a
development stage company, personnel are required to perform a multitude of
tasks including production and research and development. Revenue generation to
date has not been substantial or steady enough to warrant segregation of duties.
As such, labor costs vary from period to period. Further, we have not reached a
stage where economies of scale are available to us. Production costs vary from
period to period due to the level of revenue produced and research performed. We
anticipate, as stated previously, that as we move from a development stage
company to an operating company, management will focus on product revenues,
costs and the associated margins. As part of our effort to become an operating
company, we continue to develop and refine our production processes for our
introduced products; so that over time and as sales increase, an efficient
process can be implemented and managed on an ongoing basis. In addition, we
continue to work towards designing and establishing a cohesive marketing and
sales effort for our introduced products. Although both the forensic and
genealogy markets have been in existence for several years, our products are new
and unique to their markets, and it requires market research and testing in
order to arrive at the best way to present our products. We continue to test
markets through primary market research and advertising. This effort is ongoing
and will continue to develop as we gather information.

Cost of sales increased from $432,224 (61% of revenues) in 2003 to $507,927 (65%
of revenues) in 2004. The increase in cost of sales as a percent of revenues is
due to our refinement of our estimate and allocation of research and development
costs. Because of our small sales volume, these results are not indicative of
the margins that we expect to attain if our long-term goals are achieved. We
anticipate that as we gain experience and can begin to take advantage of
economies of scale benefits through increased revenues and our margins will
stabilize and begin to track in line with other companies in similar industries.
However, in the near term, while we continue to be a development stage
enterprise, we expect that our margins will continue to fluctuate.