AppSwarm Inc (SWRM)

[ThurstonHowellThe3rd]

Yes, 10K is out. OS 221,202,859

Revenues up 160.6% from last year.

Some highlights below:

http://ih.advfn.com/p.php?pid=nmona&article=47197301


Results of Operations

Year Ended December 31, 2010 Compared to Year Ended December 31, 2009 for San West, Inc.

Revenues. During the year ended December 31, 2010, we generated revenue of $2,728,937 or $1,681,763 more than revenue of $1,047,174 generated during the year ended December 31, 2009 representing a 160.6% year-over-year increase. The increase in sales is due mainly to the expansion of our product line to include scooters, atv’s, utv’s and off-road buggies sold through www.countyimports.com whereby the Company acts as dealer and fulfillment house since September 2009.

Cost of Goods Sold (“COGS”). During the year ended December 31, 2010, we generated COGS of $2,090,355 or $1,301,158 more than COGS of $789,197 generated during the year ended December 31, 2009. The increase in COGS is due to the increase in sales. Our gross margin decreased 1.2% to 23.4% for the year ended December 31, 2010 compared to 24.6% for 2009.

Selling, General and Administrative Expenses . Total selling, general and administrative expenses in the year ended December 31, 2010 were 2,060,749 an increase of $685,563 from $1,375,186 for the year ended December 31, 2009. The increase was due primarily to a $344,931 increase in non-cash stock compensation expense, $117,227 increase in marketing and advertising expense, $193,531 increase in professional fees, $146,925 increase in sales commissions offset by $117,054 decrease in personnel, insurance and other general operating costs.

Other Income and Expense. Other expense increased $852,573 from income of $511,425 during the year ended December 31, 2009 to expense of $341,148 during the year ended December 31, 2010. The increase is mainly due to the recognition of a $298,519 beneficial conversion feature for various convertible notes in 2010 with no such expense recognized in 2009. Also during 2009 the Company recognized a $625,976 gain on the forgiveness of debt and a $65,960 loss on the disposal of assets originally assumed from Human BioSystems compared to a $13,000 gain and no loss recognized during 2010. Interest expense increased $3,492 to $52,308 during 2010 compared to $48,816 during 2009.

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Net Loss. As a result of the foregoing, our net loss increased to $1,763,315 for the year ended December 31, 2010, from a net loss of $605,784 for the year ended December 31, 2009.

Financial Condition

From inception to December 31, 2010, we have incurred an accumulated deficit of $2,869,827. This loss has been incurred through a combination of professional fees and expenses supporting our plans to acquire synergistic businesses as well as past operating losses.

Our primary source of liquidity has been cash generated by operations, issuance of promissory notes and capital raised through equity sales of our common stock. During the year ended December 31, 2010 we had cash on hand of $11,566 and experienced a net decrease in cash of $39,093 compared to cash on hand of $50,659 at December 31, 2009.

As of December 31, 2010, we had outstanding liabilities of $1,875,050. Of this amount, approximately $1,364,820 is payable within 12 months. In the event that we are unable to repay all or any portion of these outstanding amounts from cash from operations, we would be required to:

·Seek one or more extensions for the payment of such amounts;

·Refinance such debt to the extent available; Raise additional equity capital; or

·Consummate any combination of the foregoing transactions.

Our available working capital and capital requirements will depend upon numerous factors, including product sales, the timing and cost of expanding into new markets, the status of our competitors, and our ability to attract and retain key employees.

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"We currently have 221,202,859 shares of our common stock issued and outstanding, which are held of record and beneficially owned by 316 persons not including those shares held in “street name.”