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 and six months ended June 30, 2021 and 2020 are outlined below:

Three months ended June 30, 2021 compared to three months ended June 30, 2020

                                  Three months ended
                                       June 30,                   Change
                                 2021             2020            Amount
Revenue                      $  4,192,154     $  4,439,890     $   (247,736 )
Cost of goods sold           $  4,165,831     $  4,369,059     $   (203,228 )
Gross profit (loss)          $     26,323     $     70,831     $    (44,508 )
Operating expenses           $    210,637     $  2,555,980     $ (2,345,343 )

Other income (expense) $ 11,215,908 $ (3,081,062 ) $ 14,296,970 Provision for income taxes $ - $ 13,138 $ (13,138 ) Net income (loss)

$ 11,031,594     $ (5,579,349 )   $ 16,610,943

The revenue for the three months ended June 30, 2021 decreased by $247,736 to $4,192,154 compared with the same period in 2020.

Cost of goods sold for the three months ended June 30, 2021 decreased by $203,228 to $4,165,831 compared with the same period in 2020.

Operating expenses for the three months ended June 30, 2021 decreased by $2,345,343 to $210,637 compared with the same period in 2020. The decrease is mainly due to stock-based compensation for management fee in 2020.

Other income for the three months ended June 30, 2021 mainly consisted of gain on change in fair value of derivative liabilities of $11,515,726, whereas other expenses for the three months ended June 30, 2020 mainly consisted of loss on change in fair value of derivative liabilities of $2,870,558. The change in fair value of derivative liabilities is related to convertible notes.

Net income for the three months ended June 30, 2021 was $11,031,594 compared to net loss of $5,579,349 in the same period in 2020. The change is mainly due to other income.

For the three months ended June 30, 2021 and 2020 our results of operations segment, are as follows:

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