DNGO.033,filed.Revenues up 500% for three months.
Results of Operations
Comparing the year ended April 30, 2002 to the year ended April 30, 2003
Sales. For the year ended April 30, 2003, sales were $2,667,349, an increase of $2,232,353 over the $434,996 sales for the year ended April 30, 2002. The increase in sales resulted from the sales and processing of the beverage products which began production in the Company's manufacturing facility beginning in April 2002.
Gross Profit. Gross profit was ($521,841) for the year ended April 30, 2003, a decrease of $212,901 compared to the ($308,940) gross profit for the year ended April 30, 2002. The decrease in gross profit was primarily attributable to higher repairs and maintenance, product development costs and ingredients and packaging usage waste related to the start-up of the new production line in April 2002. In addition rent, property taxes, utilities, insurance and indirect labour and other fixed costs were incurred on the Mississauga manufacturing facility in the start-up period of relatively low production as well as costs of preparing the Tiverton for production.
Commission Income. Commission income was $0 for the year ended April 30, 2003, a decrease of $30,025 from the $30,025 commission income for the year ended April 30, 2002. Commission income was generated by the Company sub-licensing the use of its brand names. The decrease in commission income was a result of no activity of this type by the Company during the year ended April 2003.
Selling, Marketing, Distribution and Warehousing Expenses. Selling, marketing, distribution and warehousing expenses were $736,690 for the year ended April 30, 2003, an increase of $338,090 over selling, marketing, distribution and warehousing expenses of $398,600 for the year ended April 30, 2002. The increase was due to higher salaries and expenses to operate the warehouse which was not being used for most of the fiscal year ended April 2002.
General and Administrative Expenses. General and administrative expenses were $1,149,198 for the year ended April 30, 2003, an decrease of $1,780,485 from general and administrative expenses of $2,929,683 for the year ended April 30, 2002. The decrease was due to no common stock issued for legal and consulting services rendered compared to $1,513,050 for the year ended April 30, 2002.
Financing Expenses. Financing expenses were $815,167 for the year ended April 30, 2003, a decrease of $90,998 from the financing expenses of $906,165 for the year ended April 30, 2002. The decrease was a result of selling less shares below market value for the year ended April 30, 2003.
Interest. Interest was $721,233 for the year ended April 30, 2003, an increase of $461,450 over interest of $259,783 for the year ended April 30, 2002. The increase was a result of financing the losses, warehouse, corporate office and two manufacturing facilities.
Provision for Income Taxes. As the company generated losses in the last two years no provision has been made for income taxes.
Net Loss. Net Loss was $3,944,129 for the year ended April 30, 2003, a decrease of $829,017 from the net loss of $4,773,146 for the year ended April 30, 2002. The decrease in the net loss was a result of lower general and administrative expenses and financing expenses partially offset by lower gross profit and higher selling, marketing, distribution and warehousing expenses and interest.
Other Comprehensive Loss. Other comprehensive loss was higher as a result of the strengthening of the Canadian dollar compared to the previous year. |
