Question-and-Answer Session
Operator
(Operator instructions) And we will take our first call from the side of Richard Ingrassia with Roth Capital. Go ahead please.
Jerry Trevillan – Roth Capital
Hi. This is Jerry Trevillan [ph] for Rich today. I have a couple of questions for you guys, if you don’t mind. Could you say a little more about the warrant revaluation that’s been over 1 million the last two quarters?
George Barrios
Yes, that’s just simply accounting based on the stock prices of the warrants, and we have two warrants. We have warrants with two of our licensees.
Jerry Trevillan – Roth Capital
Okay. And there’s a pretty sizeable decrease in SG&A sequentially. Are we not getting close to a pretty steady run rate?
George Barrios
Well, I think in the first quarter, I have mentioned that our $33 million was reflective of a run rate. There’s obviously a little bit of cyclicality and timing throughout the year, but I think if you ex out the McMahon’s millions non-cash impact on SG&A for the year, that first quarter run rate’s about right, and this quarter’s a little bit lower.
Jerry Trevillan – Roth Capital
Okay. And lastly, on film strategy, are you still fairly committed to the direct to video format or are you branching more into theatrical? If you could just shed some color on that, it would be appreciated.
Linda McMahon
Okay. Relative to our films entertainment division, we are focusing on our DVDs and we have – and we’re going to release in January a joint venture that we’ve done with Fox, Behind Enemy Lines 3, which is a shared revenue and shared production cost. We are also diversifying our commitment to our films entertainment to include movies of the week. There will be still an occasional theatrical release where it’s warranted and we believe it's prudent to continue into that business, but there will be more of the DVDs and movies of the week as part of that mix.
Jerry Trevillan – Roth Capital
Okay, that’s it. Thank you guys very much.
Operator
Our next question comes from Arvind Bhatia, Sterne Agee. Go ahead please.
Arvind Bhatia – Sterne Agee
Good morning. A couple of questions. One is just a housekeeping question, George, what should be the tax rate we should use from here on, the rest of the year?
George Barrios
Yes. We’re years dated around 33%. We’ve been saying around 35% for the full year, I think that’s probably, directionally still right, maybe on the higher end but right around there.
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