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Non-Tech : US Global Nanospace (USGA) -- Ignore unavailable to you. Want to Upgrade?

To: scion who wrote (91)	2/24/2004 10:44:17 AM
From: scion	Read Replies (1) \| Respond to of 132

NINE MONTHS ENDED DECEMBER 31, 2003 AS COMPARED TO NINE MONTHS ENDED DECEMBER 31, 2002 Our revenues from operations for the nine month period ended December 31, 2003 were $127,831 as compared to revenues of $0 for the nine month period ended December 31, 2002. Our cost of revenues from operations for the nine month 3 10QSB 17th Page of 20 TOC 1st Previous Next Bottom Just 17th period ended December 31, 2003 were $28,002 as compared to cost of revenues of $0 from the quarter ended December 31, 2002. This increase in revenues and costs of revenues was due to sales of our products. Research and development costs were $1,121,898 for the nine month period ended December 31, 2003 as compared to research and development costs of $1,148,516 for the nine month period ended December 31, 2002, a decrease of approximately 2%. Our research and development costs overall declined because the development of many of our products is complete and we are currently beginning to market these products. However, we expect to continue to incur significant research and development costs in the future in connection with the continued development of our products. Expense related to non-cash compensation was $2,854,053 for the nine month period ended December 31, 2003 as compared to $2,228,792 in expense related to non-cash compensation for the nine month period ended December 31, 2002. Of this amount, $2,413,587 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 $440,466 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. Other operating expense totaled $1,782,828 for the nine month period ended December 31, 2003 as compared to other operating expense of $2,276,930 for the nine month period ended December 31, 2002, a decrease of approximately 22%. This overall decrease reflects the implementation of cost cutting measures during the period.

To: scion who wrote (91)	2/24/2004 2:38:27 PM
From: scion	Respond to of 132

Everything's increasing except sales.... Operating loss quarter ended Dec 31, 03 - $2,712,818 Operating loss quarter ended Dec 31, 02 - $1,783,277 Net loss quarter ended Dec 31, 2003 - $2,702,327 Net loss quarter ended Dec 31, 02 - $1,253,410 The increase in operating and net loss is attributable to the on-going costs to develop and bring our products to market. Also attributed to this increase is the amount of deferred compensation and services related to the consulting agreements described above. Interest expense for the quarter ended December 31, 2003 totaled $228,694 as compared to interest expense totaling $92,697 for the quarter ended December 31, 2002. Interest expense increased this quarter because of fees and increases in borrowing. During the quarter ended December 31, 2003, fees of $239,185, included in debt restructure, were forgiven.