Well, it also said this:

we have begun the transition from a research and development company to a full commercial production company, certain costs that had in the past periods been classified as research and development due to the testing nature of these costs, have been proven and now are classified as both operating expenses and capitalized as costs in property, plant and equipment.

I'm having some trouble understanding how that applies to the reported numbers for all the quarters.

Also, for the three months it said this:

Research and development expenses decreased by $390,350 for the three month period ended September 30, 2012 as compared to the same period ended

September 30, 2011. During the current year, we have significantly decreased our research and development efforts and focused mainly on the commercial

roll-out of our processors and additional processors at our sites and elsewhere. During the current period, we have begun to change our focus to the

commercial roll-out of our processors. Thus the expenses previously incurred in refining our current processor are now included in operating costs and/ or

capitalized as part of the costs of property, plant and equipment.

We'll have to wait and see if those quarterly operating expenses come down. Or if they become offset by other costs moving forward. Like the cost of rolling out.