During the quarter ended December 31, 2003 we incurred $1,072,180 in
expense related to non-cash compensation as compared to $850,679 in expense
related to non-cash compensation during the quarter ended December 31, 2002. Of
this amount, $738,435 is non-cash general and administrative expense from the
amortization of deferred compensation and services related to the issuance of
7,308,215 shares of common stock pursuant to consulting agreements we entered
into during the prior year. We will continue to recognize such non-cash expense,
having a total value of $6,560,317, over a two-year period. This amount declined
due to the cancellation of a consultant agreement as a result of which the
Company reversed unrecognized non-cash compensation in the amount of $116,626,
and canceled 843,750 shares. The remaining $333,745 relates to the issuance of
common stock in exchange for services and employee wages. We pay our consultants
and certain of our employees with our common stock in order to conserve cash. We
used, and will continue to use as necessary, consultants for the development and
marketing of our products.
During the quarter ended December 31, 2003 other operating expense totaled
$1,020,447 as compared to other operating expense of $765,333 for the quarter
ended December 31, 2002, an increase of approximately 34%. This increase is
largely due to general and administrative costs and expenses associated with
maintaining a public company. |
