Competitive Companies Inc. (fka CCOP)

[LGL8054]

Impairment of intangible assets

Impairment of intangible assets for the year ended December 31, 2011 were $22,880 as compared to $-0- for the same period of 2010, which resulted in an increase of $22,880, or 100%. Our increase in impairment of intangible assets for the year ended December 31, 2011 is due to uncertainties in our ability to recognize future economic benefit from patents that were acquired in November of 2011 with the acquisition of Wytec International, Inc.

Net Operating (Loss)

The net operating loss for the year ended December 31, 2011 was $542,001 versus a net operating loss of $1,304,951 for the year ended December 31, 2010. This resulted in a decrease of $762,950, or 58%, when compared to the same period of 2010. Our reduced net operating loss was primarily a result of the discontinuation of our entities discharged in bankruptcy during the 4th quarter of 2010. We expect significant improvements in our cost reduction efforts in 2012.