Results of Operations

Our operations for the three months ended March 31, 2022 and 2021are outlined below:

Three months ended March 31, 2022 compared to year ended March 31, 2021





                                  Three months ended
                                      March 31,                 Change
                                2022             2021           Amount
Revenue                      $ 7,759,922     $  4,272,841     $ 3,487,081
Cost of goods sold           $ 7,682,924     $  4,254,731     $ 3,428,193
Gross profit                 $    76,998     $     18,110     $    58,888
Operating expenses           $   230,428     $    136,135     $    94,293
Other income (expense)       $ 1,061,718     $ (8,566,781 )   $ 9,628,499
Provision for income taxes   $    16,805     $          -     $    16,805
Net income (loss)            $   891,483     $ (8,684,806 )   $ 9,576,289

The revenue for the three months ended March 31, 2022 increased by $3,487,081 to $4,272,841 compared with the same period in 2021. The increase is mainly due to the effects of COVID-19 causing a decrease in demand and consequently the pricing in prior year period.

Cost of goods sold for the three months ended March 31, 2022 increased by $3,428,193 to $7,682,924 compared with the same period in 2021. The increase is mainly due to an increase in revenue in this period.

Operating income for the three months ended March 31, 2022 increased by $94,293 to $230,428 compared with the same period in 2021. The increase is mainly due to an increase in professional fee.






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Other income (expense) for the three months ended March 31, 2022 increased by $9,628,499 to $1,061,718 from other expenses compared with the same period in 2021. The increase in other income is mainly due to change in fair value of derivative liabilities related to convertible notes.

Net income for the three months ended March 31, 2022 was $891,483 compared to net loss of $8,684,806 in the same period in 2021. The change is mainly due to change in fair value of derivative liabilities related to convertible notes.

For the three months ended March 31, 2022 and 2021 our results of operations segment, are as follows:

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