PSM Holdings, Inc. (fka PSMH)

[Royal]

PSMH The increase in loss was principally attributable to the Company's acquisition of four mortgage companies, investment in the human resources of each of those acquistions, and investment in recruiting experienced mortgage executives which resulted in the Company incurring significant general and administrative expenses as compared to the expenses incurred in comparable prior period in 2011. The fluctuations in revenues and expenses are more fully explained below.