If you look at a few of my prior posts I mention what I think will happen with margins. I think margins will be maintained compared to q1. The reason I say this is we raised the price from $2 - $5. I don't think they would drop the price below $2 for the distributor considering the new price point, but I could be wrong. I'm fine with lower margins off it boosts revs and creates profitability.
Don't assume that they received payment before delivery. They had an order back in September but didn't make it public until they received payment in October. This suggests to me that they followed customary practice and shipped the order before (or at the same time as) they billed it. MCIG was making a 50%+ profit margin on VCIGs when they were selling at $2 & $3 each. They will probably still have at least 50% margin even after a huge volume discount and perhaps another 2% discount for prompt payment, which is also customary in these kinds of deals.
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