Hi elzephyrus, I probably didn't explain that well enough, but it was supposed to be a basic running commentary on business phases starting years ago. Back in those early days Alexium paid a fair portion of the trial costs out of pocket while we were drumming up business, it's a very competitive market to break into and dangling incentives early on were necessary, such as lower margins, cheap trials and up to 120 days payment terms, my understanding is these days the trials are either at cost or actually charged out, payment terms have been dramatically reduced and decent margins have also now been added.
You are spot on about how our costs were higher due to the lack of being able to buy in bulk, I believe much of that is also behind us now with larger orders, how that's still effecting trial orders I'm uncertain about, but the customer should now be coughing up for that.
Cheers.
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