Replies to post #2958 on HW Holdings Inc. (fka HHWW)

[Basser1]

If the company is doing well could you tell me why the net losses are far outpacing revenue increases???

For the three months ended September 30, 2011, we reported net sales of $266,046, a decrease of $16,072, or 6%, less than the $282,118 reported for the quarter ended September 30, 2010. Gross margin decreased to -28% for the quarter ended September 30, 2011 compared to 52% for the quarter ended September 30, 2010. Operating expenses, which include all selling, general and administrative costs, increased $710,646, or 321%, to $931,852 for the quarter ended September 30, 2011 as compared to $221,206 for the quarter ended June 30, 2010. Net loss for the quarter ended September 30, 2011 was $1,005,343 compared to net loss of $74,175 for the quarter ended September 30, 2010.

For the nine months ended September 30, 2011, we reported net sales of $532,860, an increase of $91,495, or 21%, over the $441,365 reported for the nine months ended September 30, 2010. Gross margin decreased to 13% for the nine months ended September 30, 2011 compared to 52% for the nine months ended September 30, 2010. Operating expenses, which include all selling, general and administrative costs, increased $1,708,648, or 394%, to $2,141,971 for the nine months ended September 30, 2011 as compared to $443,324 for the nine months ended September 30, 2010. Net loss for the nine months ended September 30, 2011 was $2,070,444 compared to net loss of $205,603 for the nine months ended September 30, 2010. 17

Basser