INNOVATIVE EYEWEAR INC Management’s Discussion and Analysis of Financial Condition and Results of Operations. (form 10-Q)
The next dialogue and evaluation of our monetary situation and outcomes of operations needs to be learn along with our monetary statements and the associated notes and the opposite monetary info included elsewhere on this Quarterly Report. This dialogue incorporates forward-looking statements that contain dangers and uncertainties. Our precise outcomes may differ materially from these anticipated in these forward-looking statements because of numerous elements, together with these mentioned beneath and elsewhere on this Quarterly Report.
Overview
We develop and promote good eyeglasses and sun shades, that are designed to permit our prospects to stay linked to their digital lives, whereas additionally providing imaginative and prescient correction and safety. Our flagship product, Lucyd Lyte, permits the wearer to hearken to music, take and make calls, and use voice assistants to carry out many frequent smartphone duties hands-free.Revolutionary Eyewear owns the unique rights to the Lucyd model and the Lyte product line. Our mission is to Improve Your Eyewear. Our good eyewear is a fusion of headphones with glasses, bringing imaginative and prescient correction and safety along with digital connectivity and clear audio, whereas additionally providing an answer for listening to music open air (as in comparison with in-ear headphones). The comfort of getting a Bluetooth headset and cozy glasses in a single, particularly for thesewho are already accustomed to all-day eyewear use, gives a life-style improve at a value just like conventional prescription eyewear. After the complete launch of Lucyd Lyte inJanuary 2021 , we had sturdy curiosity and demand from prospects within theU.S. and have since offered 1000's of our good eyewear. With a purpose to meet the rising demand for our merchandise, and in an effort to broaden our attain, we have now engaged over 150 distinctive wholesale accounts. All of our merchandise are designed inMiami , manufactured inAsia , and presently offered via two main gross sales channels:
(1) ecommerce primarily through our web site (Lucyd.co) and marketplaces corresponding to
Amazon, Bestbuy.com and DicksSportingGoods.com.
(2) a rising community of unbiased eyewear shops.
We apply a producer recommended retail value ("MSRP") of $149 (for our
customary frames) to $179 (for our titanium frames) for non-prescription,
polarized sunglass and blue mild blocking glasses throughout all of our on-line
channels, with our wholesale pricing providing quantity reductions to those costs.
Please seek advice from dialogue within the Elements of Outcomes of Operations for extra
particulars relating to our pricing construction.
We're gearing-up to broaden these channels with nationwide eyewear chains, huge field
retail shops (electronics, sporting items, normal merchandise) and specialty
retail shops.
We view this enterprise mannequin as being extra environment friendly as regards to the
deployment of capital, by electing to not construct our personal manufacturing services
and Firm-owned retail distribution, however relatively contract with current sources
of manufacturing and shopper going through retail distribution.
Influence of COVID-19 on Our Enterprise
OnMarch 11, 2020 , theWorld Well being Group formally declared the outbreak of the COVID-19 virus a "pandemic." This contagious illness outbreak has continued to unfold throughout the globe and is impacting worldwide financial exercise and monetary markets. In mild of the unsure and quickly evolving scenario referring to the unfold of COVID-19, we took precautionary measures meant to reduce the danger of the virus to our staff, by following theCDC tips. Particularly, we arrange a system that enabled our staff to work remotely when it was helpful for them or after they felt ailing. Moreover, precautionary measures which were adopted could negatively have an effect on our capacity to promote our merchandise. For instance, decreasing {the marketplace} traction at commerce reveals, and retail retailer site visitors for our re-sellers, and the fulfilment of buyer orders with custom-made lenses, transport delays and different operations of our suppliers and fulfilment companions. Moreover, our product is manufactured inChina and shipped fromChina frequently. Now we have not skilled substantial delays in manufacturing or transport because of COVID-19, nevertheless, we're uncovered to such danger sooner or later as a possible influence of COVID-19. Extra typically, the outbreak of COVID-19 may adversely have an effect on economies and monetary markets globally, probably resulting in an financial downturn, which may lower shopper spending and adversely have an effect on demand for our merchandise. It's not doable right now to estimate the influence that COVID-19 may have on our enterprise, because the influence will depend upon future developments, that are extremely unsure and can't be predicted. 11
Key Components Affecting Efficiency
Growth of retail factors of buy
Our future relies upon largely on our capacity to position Lucyd Lyte in optical shops in addition to sporting items shops and different specialty shops. To deal with this, we assembled a workforce with many years of expertise within the eyewear trade and are providing a robust co-op advertising and marketing program and reordering incentives program. We presently have 12 completely different types accessible and plans to repeatedly improve this quantity over time.
Retail retailer shopper retention and re-orders
Our capacity to maintain and improve income relies upon largely on our capacity to obtain re-orders from shops, both instantly or via our wholesale distributors. To assist our gross sales to retail shops instantly, we provide a robust co-op advertising and marketing program that features free and paid retailer show supplies. As a part of this technique, we have now launched a digital try-on kiosk for our resellers to assist educate their in-store prospects about Lucyd Lyte and allow prospects to strive them on in a contact-less method, to mitigate buyer contact with
viral pathogens. Investing in enterprise progress We imagine that individuals care about what they put on on their faces, and since we perceive that prospects have various preferences in regards to the form, measurement and design of their eyewear, we purpose to repeatedly put money into the design and improvement of recent fashions in an effort to offer the buyer with a large number of types, colours and finishes. We additionally intend to put money into co-op advertising and marketing with retail shops, growth of our gross sales and advertising and marketing workforce (together with influencers) to broaden our model consciousness and on-line presence. We may even improve our normal and administrative bills within the foreseeable future to cowl the extra prices for finance, compliance, provide chain, high quality assurance and investor relations as we develop as a public firm. Key Efficiency Indicators Retailer Rely (B2B)
We imagine that one of many key indicators for our enterprise is the variety of
retail shops onboarded to promote Lucyd Lyte. We began onboarding our first
retail shops in
Lucyd Lyte primarily in
Based mostly on the present demand for our merchandise, present distribution and not too long ago consummated provide agreements, we anticipate that our merchandise shall be accessible in a major variety of new third-party retail areas in 2022.
Re-order ratio (B2B)
Lots of the retail shops that positioned preliminary stocking orders, both instantly or via our wholesale distributors, have additionally positioned follow-on orders within the few brief months since launching our wholesale enterprise inJune 2021 . As ofJune 30, 2022 , 32.7% of shops have re-ordered our product. We anticipate this quantity to steadily improve as we roll out our co-op advertising and marketing program and introduce extra of our digital try-on kiosks into retail shops, to facilitate buyer training and product sell-through.
Variety of on-line orders (B2C)
For our ecommerce enterprise, we observe the variety of on-line orders as an indicator of the success of our on-line advertising and marketing efforts. As ofJune 30, 2022 , we acquired a complete of over 9,827 orders from prospects on-line. We imagine that the addition of recent types, in addition to additional funding in model consciousness, product ambassadors and influencer campaigns, will allow continued progress of on-line orders within the foreseeable future. We anticipate to allocate a good portion of our promoting expenditures in the direction of influencer advertising and marketing applications. 12
Elements of Outcomes of Operations
Internet Income
Our income is generated from the gross sales of prescription and
non-prescription optical glasses, sun shades and transport expenses, that are
charged to the client, related to these purchases. We promote merchandise
via our retail retailer resellers, distributors and on our personal web site Lucyd.co
and on Amazon.
We apply a producer recommended retail value ("MSRP") of $149 (for our
customary frames) to $179 (for our titanium frames) for non-prescription,
polarized sunglass and blue mild blocking glasses throughout all of our on-line
channels. U.S. shoppers get pleasure from free USPS firstclass postage, with quicker
supply choices accessible for further price, for gross sales processed via our
web site and on Amazon. For Amazon gross sales, transport is free for U.S shoppers
whereas worldwide prospects pay transport expenses. Any prices related to
charges charged by the web platforms (Shopify for Lucyd.co web site and Amazon)
aren't recharged to prospects. We cost relevant state gross sales taxes in
addition to the MSRP for each on-line channels and all different marketplaces on
which promote.
Our wholesale pricing for eyewear offered to retail retailer companions and distributors
contains quantity reductions to the MSRP, because of the nature of enormous amount
orders. The pricing contains transport expenses, whereas excluding any state gross sales
tax expenses relevant. Because of the nature of wholesale retail orders, no
e-commerce charges are relevant.
Our prescription lens value presently ranges from $35 to $275 , which is charged
along with the MSRP. Glasses with prescription lenses are solely accessible
via our web site Lucyd.co, whereas our gross sales via Amazon and to our retail
companions solely embrace non-prescription glasses.
Price of Items Bought
Price of products offered contains the prices incurred to accumulate supplies, assemble,
and promote our completed merchandise.
For retail gross sales positioned on one among our eCommerce channels these prices embrace (i) product prices held on the lesser of price and internet realizable worth and inclusive of stock reserves, (ii) freight, import, and inspection prices, (iii) optical laboratory prices for RX glasses, (iv) service provider charges, (v) charges paid to third social gathering eCommerce platforms (vi) and value of transport the product to the shopper.
For wholesale gross sales these prices embrace (i) product prices acknowledged on the lesser
of price and internet realizable worth and inclusive of stock reserves,
(ii) freight, import, and inspection prices, (iii) and bank card charges.
When shoppers place their orders instantly on our on-line retailer, our price of
items offered on a per-unit foundation is roughly 8% decrease than when shoppers
place their orders instantly from third social gathering platforms.
We anticipate our price of products offered to fluctuate as a proportion of internet income
primarily because of product combine, buyer preferences and ensuing demand,
buyer transport prices, and administration of our stock and merchandise combine.
Over time we anticipate our whole price of products offered on a per unit foundation to lower because of a rise in scale. Improve in scale is achieved in consequence of improve in volumes from each enterprise to shopper and enterprise to enterprise (retail retailer) orders. We proceed to broaden our merchandise with line extensions and new fashions and broaden our presence in retail shops carrying our merchandise.
Gross Revenue and Gross Margin
We outline gross revenue as internet revenues much less price of products offered. Gross margin is gross revenue expressed as a proportion of internet revenues. Our gross margin could fluctuate sooner or later based mostly on quite a few elements, together with the fee at which we are able to get hold of, transport, and assemble our stock, the speed at our vendor community expands, and the way efficient we will be at controlling prices, in any given interval.
We anticipate our price of products offered, on a per unit foundation, will lower with
scale, and this may probably have a optimistic influence on our gross margins.
13
Working Bills
Our working bills consist primarily of:
? normal & administrative bills that embrace primarily consulting and payroll
bills, IT & software program, authorized, inventory compensation expense, postage and
non-customer product transport and different administrative expense;
? gross sales and advertising and marketing bills together with price of on-line and TV promoting,
advertising and marketing company charges, influencers, commerce reveals and different initiatives;
? associated social gathering administration price for a variety of back-office companies offered by
Lucyd Ltd. ;
? analysis and improvement bills associated to (i) improvement of recent types and
options of our good eyewear (ii) improvement and enchancment of our ecommerce
web site (iii) improvement of our Vyrb social media app for wearables.
Curiosity and Different Revenue, Internet
Curiosity and different earnings, internet, consists primarily of curiosity expense paid on
convertible observe mortgage because of the Mum or dad.
Provision for Revenue Taxes
Provision for earnings taxes consists of earnings taxes associated to international and home federal and state jurisdictions through which we conduct enterprise, adjusted for allowable credit, deductions, and valuation allowance towards deferred
tax belongings. Outcomes of Operations
Three Months Ended
The next desk summarizes our outcomes of operations for the three months
ended
Change
between the
three
Three months
Three months months ended
ended ended June 30,
June 30, June 30, 2022 and
2022 2021 2021
Revenues, internet $ 204,741 100 % $ 127,027 100 % $ 77,714 61 %
Much less: Price of Items Bought (161,494 ) 79 % (94,371 ) 74 % (67,123 ) 71 %
Gross revenue/(loss) 43,247 21 % 32,656 26 % 10,591 32 %
Working Bills:
Normal and administrative (710,135 ) 347 % (225,545 ) 178 % (484,590 ) 215 %
Gross sales and advertising and marketing (391,919 ) 191 % (270,811 ) 213 % (121,108 ) 45 %
Analysis & improvement (52,560 ) 26 % (19,128 ) 15 % (33,432 ) 175 %
Associated social gathering administration price (35,000 ) 17 % (34,975 ) 28 % (25 ) 0 % Whole Working Bills (1,189,614 ) 581 % (550,459 )
433 % (639,155 ) 116 %
Different Revenue (2,059 ) 1 % (3,837 ) 3 % 1,778 -46 % Curiosity Expense (45,386 ) 22 % (14,960 ) 12 % (30,426 ) 203 % Whole Different (Expense) (47,445 ) 23 % (18,797 )
15 % (28,648 ) 152 % Internet Loss$ (1,193,812 ) 583 %$ (536,601 ) 422 %$ (657,212 ) 122 % 14 Income Our revenues for the three months endedJune 30, 2022 , had been$204,741 as in contrast to revenues of$127,027 throughout the three months endedJune 30, 2021 . Our income is generated totally from gross sales of eyewear merchandise, particularly good frames, lenses and equipment. The rise in income was because of the launch of Lucyd Lytes, inJanuary 2021 , and subsequent scale up of gross sales and advertising and marketing actions main as much as extra product consciousness. For the three months endedJune 30, 2022 , roughly 35% of gross sales had been processed on our on-line retailer (Lucyd.co), 36 % on Amazon and 29% with reseller companions. This gross sales channel combine impacted our income for the interval, because of the truth we cost extra$35 to$275 for our prescription lenses accessible solely on Lucyd.co. For the three months endedJune 30, 2022 , we generated$161,107 of income from gross sales of non-prescription frames and$43,634 was generated from gross sales of frames with prescription lenses. All the$73,959 in gross sales generated on Amazon.com throughout the interval had been for non-prescription frames as we solely provide prescription lenses via our web site. Of the$71,910 in on-line gross sales generated via Lucyd.co,$8,128 associated to frames with prescription lenses and$63,782 of glasses offered had been with non-prescription lenses. Ecommerce gross sales are essentially the most materials portion of our gross sales so far. We anticipate that the web portion of our gross sales will steadily lower on a proportion foundation, however stay an necessary element of our whole gross sales as we onboard extra retail shops. We pursued progress in retail retailer section within the yr ended 2021 and for the reason that starting of 2022, rising our retail retailer presence to over 200 shops as ofJune 30, 2022 .
Price of products offered
Our whole price of products offered elevated to$161,494 for the three months endedJune 30, 2022 , as in comparison with$94,371 for the three months endedJune 30, 2021 . This improve mirrors the rise in underlying gross sales mentioned above. These objects included, however weren't restricted to, the price of frames of$94,230 , price of prescription lenses incurred with our third-party vendor of$20 ,661and affiliate referral charges, gross sales fee expense, ecommerce platform charges of$44,406 for the three months interval endedJune 30, 2022 . Out of$161,494 of our whole price of products offered for the three months endedJune 30, 2022 ,$19,584 associated to orders with prescription lenses, whereas$141,910 pertained to non-prescription orders. Over time, we anticipate third-party retail shops to turn into our major gross sales channel as we onboard extra shops. Consequently, we anticipate gross sales of prescription lens, provided via our web site to lower as our third-party retail companions outfit our Lyte frames with extra prescriptions. Consequently, over time we anticipate prescription lens prices to steadily lower as a proportion of our total price of products offered. We anticipate progress in each wholesale and ecommerce channel gross sales in 2022, we additionally anticipate corresponding progress in whole price of products offered, primarily from extra product associated prices.
Gross revenue
Our gross revenue elevated to$43,247 for the three months endedJune 30, 2022 , as in comparison with$32,656 for the three months endedJune 30, 2021 . This improve was because of the distinction within the value of Lucyd Lytes versus merchandise accessible on the market within the second quarter of 2021, with new fashions launched at larger costs after the primary quarter of 2021. We anticipate that gross earnings for the fiscal yr ended 2022 to enhance barely, primarily because of economies of scale from massive anticipated orders. As we anticipate retail shops to turn into our major gross sales channel as we onboard new shops, we additionally anticipate our total gross margin to approximate that of the wholesale channel, the place no e-commerce platform charges, or prescription lens price apply and quantity associated value reductions are included. 15 Working bills Our working bills elevated to$1,189,614 for the three months endedJune 30, 2022 , as in comparison with$550,459 for the three months endedJune 30, 2021 . This improve was primarily because of the growth of our enterprise following the launch of Lucyd Lyte inJanuary 2021 and included, however was not restricted to, the following:
Normal and administrative bills
Our normal and administrative bills elevated to$710,135 for the three months endedJune 30, 2022 , as in comparison with$225,545 for the three months endedJune 30, 2021 . This improve was primarily because of a rise of inventory choice awards issued betweenApril 2021 andSeptember 2021 , from$105,000 to$319,479 , ensuing from improve in our staffing in 2021. Additionally, because of Firm's progress and elevated used of consultants, consulting charges elevated from$79,903 to$137,666 . Gross sales and advertising and marketing bills
Our gross sales and advertising and marketing bills elevated to$391,919 for the three months endedJune 30, 2022 , as in comparison with$270,811 for the three months endedJune 30, 2021 . The rise was primarily because of our multi-prong gross sales and advertising and marketing strategy, rising repeatedly over 2021 and within the first quarter of 2022 after the launch of the principle product in 2021, together with the prices of on-line promoting of$195,478 , influencer prices of$22,459 and commerce reveals of$19,635 . We additionally employed 4 gross sales & advertising and marketing workers and booked$97,472 in associated inventory compensation expense for the interval. We anticipate these prices to additional improve as we proceed to put money into and construct our model, broaden the variety of ecommerce platforms we promote our merchandise on and put money into retail retailer co-op advertising and marketing applications to assist educate our in-store prospects about Lucyd Lytes, and improve our model's bodily presence and position within the eyewear trade.
Associated social gathering administration price
Our associated social gathering administration price was$35,000 for the three months endedJune 30, 2022 , as in comparison with$25,000 for the three months endedJune 30, 2021 . The improve was because of elevated scope of assistances acquired underneath the settlement, akin to steady scale up of Firm's operations after launch of its flagship product within the first quarter of 2021. The administration charges are associated to the administration companies settlement between us and an affiliate of our Mum or dad.
Analysis and improvement prices
Our analysis and improvement prices elevated to$52,560 for the three months endedJune 30, 2022 , as in comparison with$19,128 for the three months endedJune 30, 2021 . The rise was primarily attributable to the elevated price of recent body improvement by$33,432 , because the Firm continued to broaden its product line after the flagship product was launched within the first quarter of 2021 16
Six Months Ended
Change between the
Six months ended Six months ended six months ended
June 30, June 30, June 30,
2022 2021 2022 and 2021
Revenues, internet $ 440,763 100 % $ 244,152 100 % $ 196,611 81 %
Much less: Price of Items Bought (323,126 ) 73 % (202,156 ) 83 % (120,970 ) 60 %
Gross revenue/(loss) 117,637 27 % 41,996 17 % 75,641 180 %
Working Bills:
Normal and administrative (1,317,108 ) 299 % (298,428 ) 122 % (1,018,680 ) 341 %
Gross sales and advertising and marketing (976,714 ) 222 % (390,857 ) 160 % (585,857 ) 150 %
Analysis & improvement (88,367 ) 20 % (26,897 ) 11 % (61,470 ) 229 %
Associated social gathering administration price (70,000 ) 16 % (59,975 ) 25 % (10,025 ) 17 %
Whole Working Bills (2,452,189 ) 556 % (776,157 ) 318 % (1,676,032 ) 216 %
Different Revenue (2,558 ) 1 % - 0 % (2,558 )
Curiosity Expense (63,261 ) 14 % (24,152 ) 10 % (39,109 ) 162 %
Whole Different (Expense) (65,819 ) 15 % (24,152 ) 10 % (41,667 ) 173 %
Internet Loss $ (2,400,371 ) 545 % $ (758,313 ) 311 % $ (1,642,058 ) 217 %
Income
Our revenues for the six months ended June 30, 2022 , had been $440,763 as in contrast
to revenues of $244,152 throughout the six months ended June 30, 2021 . Our income
is generated totally from gross sales of eyewear merchandise, particularly good frames,
lenses and equipment. The rise in income was because of the launch of Lucyd
Lytes, in January 2021 , and subsequent scale up of gross sales and advertising and marketing
actions main as much as extra product consciousness.
For the six months ended June 30, 2022 , roughly 25% of gross sales had been
processed on our on-line retailer (Lucyd.co), 34% on Amazon and 41% with reseller
companions. This gross sales channel combine impacted our income for the interval, because of the
truth we cost extra $35 to $275 for our prescription lenses accessible solely
on Lucyd.co. For the six months ended June 30, 2022 , we generated $368,412 of
income from gross sales of non-prescription frames and $72,351 was generated from
gross sales of frames with prescription lenses. All the $135,534 in gross sales generated
on Amazon.com throughout the interval had been for non-prescription frames as we solely
provide prescription lenses via our web site. Of the $124,740 in on-line gross sales
generated via Lucyd.co, $35,508 associated to frames with prescription lenses
and $89,232 of glasses offered had been with non-prescription lenses. Ecommerce gross sales
are essentially the most materials portion of our gross sales so far.
We anticipate that the web portion of our gross sales will steadily lower on a
proportion foundation, however stay an necessary element of our whole gross sales as we
onboard extra retail shops. We pursued progress in retail retailer section within the
yr ended 2021 and the second quarter of 2022, rising our retail retailer
presence to over 200 shops as of June 30, 2022 .
Price of products offered
Our whole price of products offered elevated to$323,126 for the six months endedJune 30, 2022 , as in comparison with$202,156 for the six months endedJune 30, 2021 . This improve mirrors the rise in underlying gross sales mentioned above. These things included, however weren't restricted to, the price of frames of$195,818 , price of prescription lenses incurred with our third-party vendor of$55 ,081and affiliate referral charges, gross sales fee expense, ecommerce platform charges of$69,987 for the six months interval endedJune 30, 2022 . Out of$323,126 of our whole price of items offered for the six months endedJune 30, 2022 ,$63,888 associated to orders with prescription lenses, whereas$259,238 pertained to non-prescription orders. 17 For the six months endedJune 30, 2022 , roughly 25% of gross sales had been processed on our on-line retailer (Lucyd.co), 34% on Amazon and 41% from reseller companions. This gross sales channel combine impacted our price of products offered, as the price of prescription lenses attributable to our Lucyd.co gross sales elevated our price of items offered via Lucyd.co whereas not impacting price of products offered for gross sales realized via Amazon or retail retailer companions. Over time, we anticipate third-party retail shops to turn into our major gross sales channel as we onboard extra shops. Consequently, we anticipate gross sales of prescription lens, provided via our web site to lower as our third-party retail companions outfit our Lyte frames with extra prescriptions. Consequently, over time we anticipate prescription lens prices to steadily lower as a proportion of our total price of products offered. We anticipate progress in each wholesale and ecommerce channel gross sales in 2022, we additionally anticipate corresponding progress in whole price of products offered, primarily from extra product associated prices.
Gross revenue
Our gross revenue elevated to$117,637 for the six months endedJune 30, 2022 , as in comparison with$41,996 for the six months endedJune 30, 2021 . This improve was because of the distinction within the value of Lucyd Lytes versus merchandise accessible for sale within the second quarter of 2021, with new fashions launched at larger costs after the primary quarter of 2021. We anticipate that gross earnings for the fiscal yr ended 2022 to enhance barely, primarily because of economies of scale from massive anticipated orders. As we anticipate retail shops to turn into our major gross sales channel as we onboard new shops, we additionally anticipate our total gross margin to approximate that of the wholesale channel, the place no e-commerce platform charges, or prescription lens price apply and quantity associated value reductions are included.
Working bills
Our working bills elevated to$2,452,189 for the six months endedJune 30, 2022 , as in comparison with$776,157 for the six months endedJune 30, 2021 . This improve was primarily because of the growth of our enterprise following the launch of Lucyd Lyte inJanuary 2021 and included, however was not restricted to, the following:
Normal and administrative bills
Our normal and administrative bills elevated to$1,317,108 for the six months endedJune 30, 2022 , as in comparison with$298,428 for the six months endedJune 30, 2021 . This improve was primarily because of a rise of inventory choice awards issued betweenApril 2021 andSeptember 2021 , ensuing from improve in our staffing in 2021, from$128,821 to$638,958 . Additionally, because of Firm's progress and elevated used of consultants, consulting charges elevated from$121,008 to$265,669 . Gross sales and advertising and marketing bills Our gross sales and advertising and marketing bills elevated to$976,714 for the six months endedJune 30, 2022 , as in comparison with$390,857 for the six months endedJune 30, 2021 . The rise was primarily because of our multi-prong gross sales and advertising and marketing strategy, rising repeatedly over 2021 and within the six months of 2022 after the launch of the principle product in 2021, together with the prices of internet advertising of$651,987 , influencer prices of$37,682 and commerce reveals of$80,099 . We additionally employed 4 gross sales & advertising and marketing workers and booked$194,944 in associated inventory compensation expense for the interval. We anticipate these prices to additional improve as we proceed to put money into and construct our model, broaden the variety of ecommerce platforms we promote our merchandise on and put money into retail retailer co-op advertising and marketing applications to assist educate our in-store prospects about Lucyd Lytes, and improve our model's bodily presence and position within the eyewear trade.
Associated social gathering administration price
Our associated social gathering administration price was$70,000 for the six months endedJune 30, 2022 , as in comparison with$59,975 for the six months endedJune 30, 2021 . The improve was because of elevated scope of assistances acquired underneath the settlement, akin to steady scale up of Firm's operations after launch of its flagship product within the first quarter of 2021. The administration charges are associated to the administration companies settlement between us and an affiliate of our Mum or dad.
Analysis and improvement prices
Our analysis and improvement prices elevated to$88,367 for the six months endedJune 30, 2022 , as in comparison with$26,897 for the six months endedJune 30, 2021 . The rise was primarily attributable to the elevated price of recent body improvement because the Firm continued to broaden its product line after the flagship product was launched within the first quarter of 2021 18
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