Get Started for Free Contexxia identifies hard-to-find pieces of information in SEC filings. No more highlighters, no more redlining, no more poring over huge documents. Freeze Tag, Inc. (1485074) 10-Q published on May 17, 2021 at 5:00 pm
On January 25, 2021, the Company received an additional PPP Loan in the amount of $174,421. Under the Paycheck Protection Program, the PPP Loan has a fixed interest rate of 1%, a maturity date five years from the date of the funding of the loan and no payments are due for six months. Other terms are consistent with the first PPP loan.
Results of Operations for Three Months Ended March 31, 2021 Compared to the Three Months Ended March 31, 2020.
Our revenues for the three months ended March 31, 2021 of $505,856 were up $102,366 from revenues of $403,490 for the three months ended March 31, 2020. The primary reason for the increase in revenues year over year was due to increased revenues in our broader portfolio of apps and product offerings, including increases in the use of our re-built Eventzee app.
Cost of sales decreased $5,637 to $58,277 for the three months ended March 31, 2021 from $63,914 for the three months ended March 31, 2020. The decrease was a mainly a result of decreased physical product costs, and product support costs.
Selling, general and administrative expenses increased $43,498 to $487,031 for the three months ended March 31, 2021 from $443,533 for the three months ended March 31, 2020. The increase is primarily due to an increase in marketing, postage, insurance, salary and programming expenses, offset by a decrease in accounting fees.
Total other income (expense) for the three months ended March 31, 2021 of ($11,695) was $1,605 higher than other income (expense) of ($10,090) for the three months ended March 31, 2020. The change is primarily driven by an increase in interest expense.
By comparison, we used net cash of $81,908 in operating activities for the three months ended March 31, 2020 mainly as a result of a net loss of $114,047 and decreases of our accounts payable of $23,711 and other current liabilities of $20,370. These uses of cash were partially offset by a decrease of our prepaid expenses and other assets of $7,033 and increases in our accrued expenses of $25,327.