Element 21 Golf Company generated Q3 revenue of $1.8 million, an increase of 322% compared to revenue of $0.6 million in the same period in fiscal 2008. The combined fiscal 2008 Q1, Q2 and Q3 revenues are $2.8 million, showing tripling in sales as compared to the equivalent period the previous year. The third quarter results include non-cash barter revenue of $54,286, and incurred costs of sales of $959,542 and general and administrative expenses of $910,591.


 

Included in general and administrative expenses is a non-cash charge of $302,011, representing the value of compensatory common stock and warrants for services provided by consultants. This resulted in a net loss of $116,012, as compared with the three months ended Mar. 31, 2008 in which the company had revenue of $565,630, incurred costs of sales of $461,292 and general and administrative expenses of $1,274,478 and derivative income of $253,853.  Included in general and administrative expenses is a non-cash charge of $462,259, representing the value of common shares issued for services provided by consultants. This resulted in a net loss of $923,225.

At the same time the Loss from Operations for Q3 decreased significantly to $0.5 million in 2009 from $1.2 million in 2008.


“Element 21 has been able to lower its Loss from Operations to $45,000 in Q3, which puts us very close to cash flow positive position,” said Nataliya Hearn, President and CEO of Element 21.


Nine Months


For the nine months ended Mar. 31, 2009 the company had revenue of $2.8 million, which includes non-cash barter revenue of $172,757, and incurred costs of sales of $1,594,589 and general and administrative expenses of $2.5 million. Included in general and administrative expenses is a non-cash charge of $1.4 million, representing the value of compensatory common stock and warrants for services provided by consultants. This resulted in a net loss of $1.3 million, as compared with the nine months ended Mar. 31, 2008 in which the company had revenue of $952,562, incurred costs of sales of $736,419 and general and administrative expenses of $4.1 million, and interest income of $11,047, and interest expense of $10,174, offset by derivative income of $2.3 million, resulting in a net loss of $1.6 million.

 



CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

FOR THE NINE AND THREE MONTHS ENDED MARCH 31, 2009 AND 2008

(unaudited)






















































































































































































































   
Nine months Ended March 31,
   
Three months Ended March 31,
 
   
2009
   
2008
   
2009
   
2008
 
                         

  REVENUES
  $ 2,811,328     $ 952,562     $ 1,825,421     $ 565,630  
                                 

COSTS OF SALES
    1,594,589       736,419       959,542       461,292  
                                 
                                 

GROSS MARGIN
    1,216,739       216,143       865,879       104,338  
                                 

General and administrative expenses
    2,468,407       4,128,770       910,591       1,274,478  
                                 
              <

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