Ann: March Quarterly Activity and Cashflow Report, page-8

That's why I said their money should spend wisely in order to increase production with the aim to reduce Cost of Good Sold. If the gross profit is 34k, and the revenue is 800k as they have claimed, it means the mark up from cost is only 4% !! This is like every $100 you made, you are only earning $4 dollars and this doesn't even include all other operating expenses such as rent, wages etc !!

Such profit margin is generally unacceptable unless the turnover is extremely high, which is unlikely in the case due to its higher retail price compared to its competitors. In other words, if they failed to reduce cost or substantially increase their turnover, I can't see how the business can continue to run. A $1.8 million dollars loss in a quarter is totally a concern unless MXC manage to keep raising capital from the market?