Operating Expenses increasing faster than sales/revenue/GMQuaterly Results
Product/Hardware/Software Service Recurring Fee Total Net Profit/Loss
21Q1 0.98M 14K 0.73M 1.73M - 39K
21Q2 1.63M 18K 0.64M 2.28M +130K
21Q3 1.66M 17K 0.74M 2.42M +145K
21Q4 1.32M 18K 0.76M 2.11M +177K
22Q1 1.42M 135K 0.81M 2.37M +16K
22Q2 1.78M 47K 0.90M 2.73M +154K
22Q3 1.55M 57K 1.04M 2.65M +216K
22Q4 1.10M 60K 1.12M 2.28M +140K
1.56M is deferred income tax in Q4 taking EPS at 2C for 2022 FY
The yellow flag is Operating Expenses increasing faster than sales/revenue/Gross Profit or any other parameter
Operating expenses, three months ended December 31, 2022, were $829,602 which is an increase of $317,699 or 62% from $511,903 of the same period in 2021.
Operating expenses, for the twelve months ended December 31, 2022, were $3,124,968, an increase of $1,284,437 or 70% from $1,840,531 for the same period of 2021. This was mainly due to Research & development expense of $512,388. Development costs did not meet the criteria for capitalization in fiscal 2022. The Company restarted its marketing activities and spent $178,313 in fiscal 2022 as compared to $59,311 for the same period in 2021. The increase is also due to salaries expenses associated with business scale up and moving costs.
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