diff --git a/README.md b/README.md
index b146c3b..6d6b50d 100644
--- a/README.md
+++ b/README.md
@@ -50,7 +50,8 @@ To setup your machine for development, please make sure you have the following:
 
 * Develop
   * FunC contracts are located in `contracts/*.fc`
-    * Standalone root contracts are located in `contracts/*.fc` and imported utility code in `contracts/lib/*.fc`
+    * Standalone root contracts are located in `contracts/*.fc`
+    * Imported utility code (when breaking code to multiple files) in `contracts/lib/*.fc`
     * This structure assists with build and deployment and assumed by the included scripts
   * Tests are located in `test/*.spec.ts`