Christine Russell

Sure, Matt. First of all we are still forecasting that an $8 million quarter would be cash breakeven. Now the thing we're focused on and Jeff was talking about the manufacturing cost reductions, we are very focused on direct margin improvements because that's what's going to allow us to reach a basically a breakeven gross margin. So you know from Q1 to Q2 our direct margin improved because primarily because of the base coat substrate and there were some other manufacturing improvements we made.

So we are still targeting to have a positive direct margin by the fourth quarter of this year and then the long term model is something along the lines of a 50% direct margin which would yield about a 40% gross margin. But again we have to absorb that, right now our fixed costs are about $2.1 million per quarter and that will need to be absorbed. This is the factory rent, this is the ERP system, utilities, things that are not variable. But right now as I said we're focused on improving the direct margin every quarter.