This is very typical guys. Given the infrastructure and early stages of the company, everything is third party supplied, manufacturing, warehousing, distribution, etc. All this cuts deeply into the gross margin. Over time as the company begins to expand, generate customer base and revenues, distribution channels and supply chain will expand and decrease overhead costs to get to the optimal GM levels of 20-30%. This will take some time to achieve. Lets be careful in the assumptions derived here. We don't need to give the clowns over on the other board more ammo to use.