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Three months ended March 31, 2007 compared to the three months ended March 31, 2006.
Net Loss. We had a net loss of $2,886,409 for the three months ended March 31, 2007 compared to a net loss of $2,630,229 for the three months ended March 31, 2006. This increased loss of $256,180 or 10% was due to increases of $1,412,657 in operating expenses and $1,262,611 in interest expense, which were partially offset by a reduction of $1,017,647 in organizational costs and a reduction in the fair value of warrant liability of $1,401,440 and an increase of $56,781 of sales. Interest expense increased in 2007 compared to 2006 as a result of increased borrowings and the amortization of deferred costs for warrants issued in connection with the borrowings. We incurred organizational costs in 2006 as a result of the reverse merger through which we acquired Old Pure Vanilla on March 13, 2006, as described in our Annual Report on Form 10-KSB for the year ended December 31, 2006.
Sales. Sales for the three months ended March 31, 2007 were $67,584 as compared to $10,803 for the three months ended March 31, 2006. The increase in sales is due to the continued growth in the government payment processing business and the roll out of our Pure Vanilla Card and Account services.
do you personally get the credit for the losses or the $56,781 increase in sales?
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