Qly expense (not including product manufacturing which is around 60% of revenue) is around $1 mil. 40% margin is not bad. So you need the 40% x Qly revenue=$1 mil to break even, this comes out Qly revenue=$2.5 mil. If they can lift the margin to 45% then Qly revenue should be around $2.22 mil to break even.
Ann: Market Update, page-23
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