Those numbers don't add up.

The cost of sales on the 1.190 million revenue for the quarter was 1.022 million or 85.9%.

Even with improved margins as was stated in the 10-Q, the amount to manufacture would approximate 70% with an expected gross margin of 30%, which is considrably more than the 14.1% derived from the quarter sales.

We need more information to understand the entire process. Have we received a down payment on the 2.7 million backlog? The balance sheet doesn't indicate a suitable amount to cover deposits for a 2.7 million backlog.

One of my questions deals with the high cost of sales for the quarter, 86% is pretty high, however we don't know the split between sales to Mezzo and direct sales, the three direct customers, and do they expect more direct sales in the future to explain why they think the gross margins will be more significant on future business.

We need a breakdown of the direct and distributor sales and cost, but the information should not be available to our competition, so we may never know this percent breakdown.

Just a few comments on how I see the information as stated.