Form SB-2/A for AUDIO HIGHWAY-COM filed on Dec 11 1998:
edgar-online.com
RESULTS OF OPERATIONS
NINE MONTHS ENDED SEPTEMBER 30, 1998 COMPARED WITH NINE MONTHS ENDED
SEPTEMBER 30, 1997
Net revenues were $87,000 for the first nine months of 1998, while theCompany recognized no revenues for the same period in 1997. The Company launched its Web site and began generating revenues in November 1997.
Cost of revenues was $57,000 for the first nine months of 1998. This primarily represents licensing costs of content distributed on the Company's Website. Since there were no revenues recognized in the first nine months of 1997, there was no cost of revenues in that period.
Selling and marketing expenses were $1,040,000 for the first nine months of 1998, up 12% from selling and marketing expenses of $927,000 for the same period in 1997. The Company expects selling and marketing expenses to increase substantially in future periods as the Company secures the financial resources from this offering to grow its business.
Research and development expenses were $739,000 for the first nine months of 1998, up 40% from $529,000 for the same period in 1997. This increase was primarily the result of increased staffing and use of consulting engineers. The Company employs outside consulting engineers to facilitate a portion of its development effort.
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