The following Management's Discussion and Analysis of Financial Condition and Results of Operations, or MD&A, is intended to help the reader understand the Company, our operations, and our present business environment. MD&A is provided as a supplement to, and should be read in conjunction with, our Consolidated Financial Statements and the accompanying Notes thereto. As discussed in more detail under "Forward-Looking Statements" immediately following this document's Table of Contents, the following discussion contains forward-looking statements that are based on our management's current expectations, estimates, and projections, which are subject to a number of risks and uncertainties. Our actual results may differ materially from those discussed in these forward-looking statements because of the risks and uncertainties inherent in future events.
13 Table of Contents Results of Operations
Fiscal year ended
The narrative comparison of the results of operations for the periods ended
Years Ended A B A-B December 31, December 31, Change 2022 2021 Change % REVENUE$ 1,558,752 $ 1,841,558 $ (282,806 ) -15 % Cost of revenues 597,842 699,378 (101,536 ) -15 % Cost of sales % of total sales 38 % 38 % 0 % Gross profit 960,910 1,142,180 (181,270 ) -16 % Gross profit % of sales 62 % 62 % 0 % OPERATING EXPENSES Professional fees 488,248 581,660 (93,412 ) -16 % Depreciation and amortization 162,136 171,163 (9,027 ) -5 % Wages and salaries 759,054 711,872 47,182 7 % Advertising 38,471 344,904 (306,433 ) -89 % General and administrative 828,071 1,078,204 (250,133 ) -23 % Total operating expenses 2,275,980 2,887,803 (611,823 ) -21 % NET LOSS FROM CONTINUING OPERATIONS (1,315,070 ) (1,745,623 ) 430,553 25 %
Revenue for the fiscal year ended
Total operating expenses decreased 21% in 2022 compared with 2021 which trended down as did revenue in the current period. Decreases in professional fees, depreciation and amortization, advertising and general and administrative expenses were offset by increases in wages and salaries. Professional fees decreased with continuing efforts at cost reduction. Depreciation and amortization decreased in part due to the discontinuation of GKMP and IBUD, as reflected below. Advertising costs were reduced by taking a more focused approach to our target markets. Wages and salaries increased with the addition of personnel in our telemedicine business relating to increased selling efforts as we expand to new markets.
Liquidity and Capital Resources
Cash used by operating activities was
The accompanying consolidated financial statements have been prepared assuming
that the Company will continue as a going concern, which contemplates the
realization of assets and the liquidation of liabilities in the normal course of
business. We incurred net losses of
14 Table of Contents
The amount of cash on hand the Company has does not provide sufficient liquidity to meet all of the immediate needs of our current operations.
Off Balance Sheet Arrangements
None
© Edgar Online, source