Without a doubt that is a crazy drop off in profit margin over a year to year basis. Most likely, with a very bad economy, they had to drop prices big time to keep revenue going and cover fixed costs.
Now, the big question is, what is the real value of an unaudited pink stock that was trading at .015 while they claimed on their unaudited filings they were making $800K and now with 1/10th the claimed profits, they have 300M+ more shares.