RESULTS OF OPERATIONS
Revenue for the six months ended June 30, 2005 was $135,244, as opposed to zero revenue the six months ended June 30, 2004. The increase in revenue can be attributed to the fact that Promotional Containers, Inc., a Nevada corporation, paid for goods and services for the benefit of the Company. During the six months ended June 30, 2005, Promotional Containers, Inc. forgave balances owed by the Company in the amount of $20,222. As of June 30, 2005 and December 31, 2004, the Company owes Promotional Containers, Inc., $60,403 and $20,222 respectively related to goods and services paid by Promotional Containers, Inc. for the benefit of the company. As of June 30, 2005, the Company is due $135,244from PCI.
Cost of revenue for the three months ended June 30, 2005 was $414,892. The gross profit for the three months ended June 30, 2005 was $279,648.
Selling, general and administrative expenses for the six months ended June 30, 2005 were $3,066,666 as opposed $72,526,057 for the same period ended June 30, 2004. Loss of operations for the six months ended June 30, 2005 was $3,346,314.
Interest expense for the period ended June 30, 2005 was $36,550, a decrease of $51,555, from the six month period ended June 30, 2004. The decrease in interest expense is due to debt forgiveness.
Total liabilities and stockholders’ deficit for the quarter ended June 30, 2005 was $2,148,222 as opposed to $659, 549 for the quarter ended March 31, 2004.
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