World Surveillance Group Inc (fka WSGI)

[BareBaxBo]

Indy, R&D falls under operating expenses and only big chunks are listed out separately.

Operating Expenses. Our operating expenses consist primarily of compensation, professional fees, research and development and depreciation, as well as expenses for executive and administrative personnel, insurance, facilities, travel and related expenses, amortization and other general corporate expenses.

Operating expenses for the three months ended September 30, 2012 totaled $768,223, compared to the $1,091,001 during the same period of 2011, a reduction of $322,778, or 29.6%. Reductions in general and administrative expenses of $388,439, primarily reflect the vesting of share-based compensation awards during 2011. The reduction in research and development of $115,065 reflects lower expenditures for testing primarily during the three months ended 2012 as compared to the same period of 2011. These reductions were partially offset by the increase in professional fees of $180,726 reflecting increases in legal fees and settlement activity during the three months ended September 30, 2012 as compared to the same period of 2011.

Looks like we were busy paying out lawyers instead of engineers,eh?