MedCAREERS Group Inc (OTCMKTS:MCGI) submitted Form 10-Q wherein it stated that the revenue for the quarter ended April 2016 came at $13,445 compared to revenue of $22,435 in the same quarter, a year ago. The decline in 1Q2016 can be attributed to sales to staffing firms priced at $6,000 in 1Q2015 compared to average sales to healthcare systems priced at around $995 in the reported quarter.
The performance
Cost of revenues in 1Q2016 came at $1,000 compared to cost of revenue of $2,345 in the comparable period, a year ago. The changes highlight the swings in costs as MedCAREERS Group promotes its nurse portal. It has yet to enter a phase where the activities in sales as well as cost of sales are comparatively constant. Until that happens, the cost of revenue is expected to vary.
Selling expenses came at $24,197 in 1Q2016 against selling expenses of $37,322 for the quarter ended April 30, 2015. This decline was due to the company’s increased focus on sales presentations by President instead of taking help of market experts for these activities. Operating expenses in 1Q2016 came at $103,379 compared to $72,036 in 1Q2015.
The highlights
MedCAREERS Group reported that other expense highlights interest on loans which amounted to $64,567 in 1Q2016 against $90,726 in the same period, a year ago. Additionally, there were other costs of $210,460 relating to the expenses of convertible debt compared to $191,846 for the quarter ended April 30, 2015. The company incurred debt extinguishment loss of $0 in 1Q2016 against $45,359 reported in the comparable quarter in 2015.
Currently the firm does not have sufficient funds or revenues to pay its monthly expenses projected at around $300,000 for next one year, and to fulfill its contractual obligations under outstanding notes payable. MedCAREERS Group has been successful in operating its business to date mainly from debt financings and certain loans made by company’s shareholders.
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