RESULTS OF OPERATIONS
Three Months Ended March 31, 2001 and 2000
Net sales for the three months ended March 31, 2001 increased to
$119,676 from $0 during the same period the prior year. Net Sales increased
primarily as a result of its Information Systems segment located in Myrtle
Beach compared to being a development stage company during the period last year.
Cost of sales for the three months ended March 31, 2001 increased to
$137,237 from $0 during the same period the prior year. The increase is
primarily due to the increase in net sales and not being in a development
stage.
Salaries and related expenses for the three months ended March 31,
2001 increased to $141,363 from $0 during the same period the prior year. This
increase is primarily due to the existing management and technical support of t
the acquired operations for Beach Access last year.
Professional fees for the three months ended March 31, 2001 increased
to $268,925 from $62,264 during the same period the prior year. This increase is
primarily due to year-end audit fees and technical consulting fees for various
new ventures.
Selling, general and administrative expenses for the three months ended
March 31, 2001 increased $194,642 from $17,577 in the same period during the
prior year primarily due to increases in selling and marketing costs associated
with its expansion of the Myrtle Beach operation.
Depreciation and amortization expenses for three months ended March 31,
2001 increased $73,140 from $1,291 for the same period during the prior year due
to the build out of its Myrtle Beach operation and beginning of a revenue stream.
Net interest expense for three months ended March 31, 2001 increased
231.9% to $36,977 from $11,140 for the same period the prior year. The increase
results primarily from the Company's additional debt for working capital,
acquisitions and fixed assets.
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