Replies to post #2199 on China Kangtai Cactus Bio-Tech Inc (fka CKGT)

[StevenRisk]

Why my estimates were to high last Q

1)Advertising costs are expensed as incurred. Advertising expenses totaled $139,175 and $0 for the six months ended June 30, 2010 and 2009.


2)Research and development costs related to both present and future products are expensed as incurred. Research and development costs totaled $104,015 and $0 for the six months ended June 30, 2010 and 2009, respectively.


3) increased amortization from patents-Patents and licenses amortization expense was $134,634 and $68,595 for the six months ended June 30, 2010 and 2009, respectively.

Operating expenses for the six months ended June 30, 2010 totaled $1,310,483, an increase of $52,672, or 4%, compared to $1,257,811 for the six months ended June 30, 2009. The increase in operating expenses was mainly attributable to our new research and development expense of $104,015 for the six months ended June 30, 2010 and increased amortization expense due to newly acquired patent.

Adding in an additional $400K last Q definately would have put earnings at around .09 with the increased shares and the higher tax rate.

Guess it is time to focus on Q3 results.