REDULTS OF OPERATIONS: COMPARISON OF THE THREE MONTHS ENDED SEPTEMBER 30, 2013 AND 2012
Revenue
Total revenues for the three months ended September 30, 2013 were $1,229,597 as compared to $1,378,869 for the same period of 2012, representing a decrease of 10.8%.
These include sales of liquor, which were $1,215,394 for the three months ended September 30, 2013 and $1,173,650 for the same period of 2012.
Sales of liquor to related parties distributors were $575,201 or approximately 47.3% of total liquor sales for the three months ended September 30, 2013; and $410,800 or 35.0% of total liquor sales for the three months ended September 30, 2012, respectively. The Company increased its sales of liquor to various new related party distributors. The Company's revenues from sales of liquor for the three months ended September 30, 2013 increased $41,744 or approximately 3.6% as compared to the same period in 2012. The Company has introduced new products to the market along with new product packaging and increased promotion and advertising spending to attract customers.
The license fees revenue for the three months ended September 30, 2013 were $14,203 and $205,219 for the same period of 2012, representing a decrease of 93.1%, as a result of the change in our strategy to reduce granting third parties the use of our brand names.
There are no related parties' revenues generated from license fees or agent sales.
