COGS % is already fairly reasonable (53% of Rev, so 47% Gross Margin) and was coming down Q over Q (from 86% in 2014 Q3 to 66% in 2014 Q4 to 53% in 2015 Q1. That shouldn't be the focus.
What everyone should be paying close attention to is Selling, General & Admin expenses which have been greater than revenues every Q. That is insane!
Also interest expense, which was also more than total revenues in 2014 Q4 and 2015 Q1. I anticipate with the $41 loan (with interest payments paused) that this item will be way down for Q2.
Also keep in mind the Distribution, Marketing, & Advertising expenses which really rose in Q1 this year. If that translates into sales increases I would be okay with it, but that really needs to be the case to justify the spend in Q1.