From what they said, the G&A should be lower in 2019 compared to 2018... but don't think they are expecting a significant decrease going forward. Salaries tend to be inflated after a merger given redundencies are paid out and are a one-off expense, so we may not see a more accurate annual run-rate until FY2020.
Admin costs look to bottom out in the June Qtr, it happened last year too. So lets see what happens in the Sep quarter.. hopefully it stays around the $2m range, but last year it shot back up to $3m.
If we look at cash outflows for R&D, advertising/marketing, staff and admin costs.. it sits around US$47m.
If they run at an average 35% gross margin, they will need approx US$134.3m in revenue to break even.
FY2018 was at 34% gross margin.
FY2020 is the year they expect to be able to be sustainably profitable ... they need the Ivory Coast deal, funding to bridge the gap and Aspirals to take-off in China to achieve this. All three of these look to be very achievable by the end of the year.
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