RESULTS OF OPERATIONS
Our earnings for the quarter and the period ended December 31, 2003
continue to reflect our status as a development stage research company. While
many of our products are developed and can be marketed, we do not have the
infrastructure or financial resources to manufacture and distribute our
products. Our efforts are currently focused on establishing worldwide
distribution channels through recognized distributors. However, although we are
currently in negotiations with one or more recognized distributors, we have not
executed any distribution agreements thus far. Therefore, we do not currently
have a significant market presence and our products have not been proven by
consistent commercial use. Additionally, sales of products geared to the defense
and homeland security markets are often tightly controlled and require decisions
to be made by one or more government agencies. There can be no assurance that
our products will be purchased on a significant scale or commercially proven in
the near term. Because we have not yet realized revenues from the sale of our
products, as in the past we will need our majority shareholder to continue
loaning the funds needed to continue our operations for the near term.
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QUARTER ENDED DECEMBER 31, 2003 COMPARED TO THE QUARTER ENDED DECEMBER 31, 2002
Our revenues from operations for the quarter ended December 31, 2003 were
$2,152 as compared to revenues of $0 for the quarter ended December 31, 2002.
Our cost of revenues from operations for the quarter ended December 31, 2003
were $241 as compared to cost of revenues of $0 from the quarter ended December
31, 2002. This increase in revenues and cost of revenues was due to sales of our
products.
During the quarter ended December 31, 2003 we spent $622,102 on research
and development as compared to $167,265 for research and development during the
quarter ended December 31, 2002. Our research and development costs increased
and will be significant because of on-going research and development of our
products. |
