Not to sound like I'm saying you don't understand the accounting procedures companies use and how it effects stock trading, for all I know you are better at it than I am, so excuse me if this comes off as speaking in laymans to a non-layman:
This is a company with many different revenue streams. They are involved in e-waste, reverse logistics, software, licensing agreements, management contracts, recently added GoEZ into the fold as well, and looking for other streams constantly. Although they are required to follow GAAP, there are SO many pieces of information based on all those rev streams that dont get put into sub-categories on Financial Statements. They are included of course, but grouped, not broken down into as many subtleties as possible. There will always be some guessing/deciphering about where particular costs are coming from. All we know is that the cost is there, but not necessarily from what part of the process.
Revenue was still higher than COGS, by $200k. Keep in mind they are procuring "parts" (e-waste) from all over the US plus other contries, but we will stick to US for an example. As a small but growing (quickly if I might add) company, the costs of acquiring and transporting goods will be a bit higher. They have new expenses from the factories that they know own/lease that they did not have last quarter. It is possible for them to lower these costs substantially once A) They have a bit of time to find the "bottlenecks" in profitability through operations (they did JUST acquire a few larger monthly expenses that they never had, time to figure out how to improve efficiency is necessary), and B) Continue to streamline the logistic side, as far as transferring materials to their main plants from any ZIP in the US. And this only covers the ewaste/reverse logistics portion.
hope this helps, and again hopefully im not coming off as being a know-it-all, just all in my opinion and personal experience of course.
AI
