PHOENIX RISING : MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS. (form 10-Q)

Results of Operations

Our operations for the three months ended March 31, 2021 and 2020 are outlined below:

Three months ended March 31, 2021 compared to three months ended March 31, 2020

                                Three Months Ended
                                     March 31,               Change
                                2021           2020          Amount
Revenue                      $ 4,272,841     $ 925,657     $ 3,347,184
Cost of Goods Sold           $ 4,254,731     $ 857,567     $ 3,397,164
Gross profit                 $    18,110     $  68,090     $   (49,980 )
Operating expenses           $   136,135     $ 282,852     $  (146,717 )
Other expense                $ 8,566,781     $ 100,092     $ 8,466,689
Provision for income taxes   $         -     $   3,396     $    (3,396 )
Net loss                     $ 8,684,806     $ 318,250     $ 8,366,556

The revenue for the three months ended March 31, 2021 increased by $3,347,184 to $4,272,841 compared with the same period in 2020. The increase is mainly due to the effects of COVID-19 causing a decrease in demand and consequently the pricing in prior period.

Cost of goods sold for the three months ended March 31, 2021 increased by $3,397,164 to $4,254,731 compared with the same period in 2020. The increase is mainly due to the effects of COVID-19 causing a decrease in revenue in prior period.

Operating expenses for the three months ended March 31, 2021 decreased by $146,717 to $136,135 compared with the same period in 2020. The decrease is mainly due to cost control under pandemic period in operating and management expenses.

Other expense for the three months ended March 31, 2021 increased by $8,466,689 to $8,566,781 compared with the same period in 2020. The increase is mainly due to change in fair value of derivative liabilities related to convertible notes.

Net loss for the three months ended March 31, 2021 was $8,684,806 compared to $318,250 in the same period in 2020. The change is mainly due to an increase in other expense.

For the three months ended March 31, 2021 and 2019 our results of operations segment, are as follows:

© Edgar Online, source Glimpses