Cost of Revenue for BKPG

Cost of revenues for BKPG totaled $2,252,000 for the nine months ended September 30, 2009 as compared to $5,125,000 for the nine months ended September 30, 2008, a decrease of $2,873,000, or 56%. External purchases had a decline of  74% and salaries declined by approximately 13%.   The main reason for the lower external purchases was because the Company made less commercial films during the 2009 period compared to the 2008 period. Salaries went down due to a reduction of staff and a general cut of 10% in salaries for all employees effective as from January 1, 2009. Further, for the three month ended September 2009 salaries to leading staff members were cut with another 15%. As for the three months which ended September 30, 2009 and 2008 cost of revenues decreased $942,000 or approximately 55% from $ 1,719,000 in 2008 to $777,000 in 2009. Outside purchases decreased with 76% and the salaries with 16% for the same reasons as described for the variances between the nine months ended September 30, 2009 and 2008.

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About Bark Group Inc.

Bark Group Inc. is an award-winning, multi-national European company that delivers cutting-edge advertising and marketing campaigns to leading European businesses. Bark develops and delivers highly effective marketing campaigns on structural, strategic, and emotional and creative levels. Its integrated approach is revolutionizing the communications field while offering clients a higher return on their advertising investments. Bark's objectives are to achieve aggressive growth through acquisition and development of satellite companies around the globe, starting with Europe. The company is adamantly pursuing its ambitious goal to be ranked among the 10 best and most profitable communication companies in Europe within 4 years.

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