And Clint, you can elaborate a little more if you want to on that, but that, that’s pretty much, where we’re at. And
Clint Pete: I just wanted to clarify, Matt, it wasn’t a change, I think it, it was just the, the, the amount of the jobs that the process as Don mentioned, related to the fabrication of the moissanite and the raw material.
Matt Koranda: Okay, got it. So we should just assume that on a go for basis inventory may, you may be able to flush more inventory, just because you’re not producing to demand not just to a certain set level every quarter.
Don O’Connell: You’re absolutely correct. One other factor that Matt, we should consider is that as lab grown diamond pricing, becomes, it’s trying to find a bottom, it’s trying to stabilize. So, because there’s a race to the bottom. When we first got in and we first introduced lab grown diamonds, inventory was at X price. So, and basically there was a cost associated with those particular goods that we had in stock at the time. Now the pricing is literally dropped and come down, but we still had the cost associated with those original goods, that original inventory. So we had some margin pressure specific to that. We believe we’ve rectified that and we remedied that and we’re in a good place now as we continue to go more vertical.
We basically are becoming more and more competitive and we’re pricing our goods in line with the market. If not, we’re actually below most of the retailers and we’re more competitive. But initially to get into the space, we made a capital investment and that inventory was valued at X. So we did feel some margin pressure there. We believe that we sold through almost all of those goods and now we’re pretty much stabilized. So, we will be in a much better place moving forward.
Matt Koranda: Okay, that makes a lot of sense. I’ll leave the rest of others. Appreciate the time.
Operator: The next question is from Peter Jackson, a private investor. Please go ahead.
UnidentifiedAnalyst: Yeah, so in the prepared comments, I think it might have been something that Clint said you said you guys were expecting sort of continued softness, especially in the second half. Can you elaborate on that? Are you making sort of a larger macro call here about the economy and interest rates, or are you saying specifically that you’re seeing continued softness or as doesn’t make sense to spend a lot of money on marketing, therefore the sales will be soft because it doesn’t make sense to, to spend the dollars?
Don O’Connell: I believe there’s a lot of truth in what you said and how you framed it across the board. I think it’s a little bit of everything. I personally feel that the global economy, although I’m not an economist and I can’t, predict what’s happening, kind of, and we don’t give, forward looking statements specific to that. But, certainly we believe that, I mean, I guess, in today’s indication, it’s up today and things are up today and optimism is up and things are moving in a positive direction. But I still believe that the consumer has, an issue specific to higher interest rates, specific to financing terms related to jewelry whether they’re going to purchase that particular item or they’re going to pay their rent or mortgage or they’re increased mortgage, whether they’re on fluctuating rates.
