Item 2. Management's Discussion and Analysis of Financial Condition and Plan of Operations
All statements that are included in this Quarterly Report, other than statements of historical fact, are forward looking statements. Although management believes that the expectations reflected in these forward looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct.
Financial Summary
Results of Operations for the Six-Months ended March 31, 2009 and 2008
For the six-month period ended March 31, 2009, the Company experienced a net loss from operations of $1,093,083 which was primarily due to research and development costs of $900,000 and selling, general and administrative expenses of $266,239. Gross profits for the period were $73,156.
For the six-month period ended March 31, 2008, the Company's net loss from operations was $450,981, which was primarily due to research and development costs of $181,053 and selling, general and administrative expenses of $336,101. Gross profits for this period were $66,176.
For the six-months ended March 31, 2009, the Company experienced a decrease in sales compared to sales for the same period last year. Sales for the six-month period ending March 31, 2009 were $158,917 compared to sales of $165,507 for the same period last year. Gross profits for the period ending March 31, 2009 represented 46% of sales, where gross profits for the same period last year represented 40% of sales.
Liquidity and Capital Resources
For the six-month period ending March 31, 2009, the Company's cash position decreased $46,597. Net cash used in operating activities was $824,113; financing activities provided $681,602; and the effect of exchange rates on cash provided $95,914
For the six-month period ending March 31, 2008, the Company's cash position increased $261,419. Net cash used in operating activities was $734,739; financing activities provided $317,518; and the effect of exchange rates on cash provided $152,379.
Management Plan of Operations
Medical International Technology, Inc. ("MIT") is engaged in the business of research, development, marketing and sales of needle-free jet injector technology and products for humans and animals, for single and mass injections.
We continue to market our product in all available markets, seek regulatory approvals to expand those market opportunities and improve our products for application to new markets.
Medical International Technology, Inc. will continue to seek additional funding to expand operations and develop sales revenue to a volume sufficient to sustain operations.