Replies to post #191185 on FrankSpeech Network Inc (INCTD)

[CashFreeze]

the biggest reason they did poorly is...


(g) Net Loss.

We reported net losses of $2,672,150 and $4,261,098 for the three
and six months ended June 30, 2006 compared with $844,689 and
$1,660,699 for the same periods of the prior year, increases of
$1,827,461 and $2,600,399, or approximately 216% and 157%,
respectively. These increases were the result of the foregoing
factors mentioned above. (I summarize below for our purposes)

(c) Advertising Expenses.
increases of $318,617
and $526,900, or approximately 233% and 316%, respectively. Such
advertising consisted of direct marketing through print, radio and
online internet advertising. We believe advertising expenses will
continue to increase by at least 15% during 2006.

(d) Consulting and Professional Fees.
increases of $632,578 and $783,939, or approximately 237% and 130%,
respectively. Increases in consulting and professional fees during
the three and six months ended June 30, 2006 compared to the same
periods in 2005 were primarily a result of additional business
consultants utilized during 2006 to aid in developing a more effective
marketing program.

(e) Depreciation and Amortization Expenses.
increases of $324,743 and $554,888, or approximately 155% and 129%,
respectively. Increases in depreciation and amortization during the
three and six months ended June 30, 2006 compared to the same periods
in 2005 were primarily a result of the purchase of additional DVD and
games inventory, which are amortized over a period of 12 months.


(f) Selling, General and Administrative Expenses.
increases of $687,549 and $1,096,374, or approximately
221% and 195%, respectively. Increases in selling, general and
administrative expenses was principally due to an increase in related
payroll expenses and contract services. The increase in related
payroll and contract services will continue to increase as the overall
growth of our business increases.


Revenues[b/] increased only
(increases of $128,317 and
$370,154, or approximately) 52% and 91%, respectively. Gross revenues
increased significantly during the three and six months ended June 30,
2006 compared to the prior periods primarily due to a greater increase
in our subscriber base compared to same period in 2005 fueled by more
market awareness of our services.



The %'s tell the story here. NOW...I'm not happy either...but in ALL cases, costs will always increase faster than Revenues while in start up/growth mode.