Ann: Change of Director's Interest Notice, page-19

Based on past reports, it seems likely that with the increased product sales, the company could at least break even, if not turn a profit.

They have recently moved to two shifts, which probably increased labor and energy costs but should also enhance efficiency per product.

Overhead costs are expected to decrease significantly since they previously spent a lot on finding a new distributor in China and securing FDA approval in the United States. These costs should now be dramatically reduced.

Given these factors, I would be surprised if they aren't breaking even. Unless there are substantial short-term capital expenditures, I believe the company is on a positive trajectory. However, I welcome both positive and negative viewpoints regarding the company's outlook.

I'm sure someone smarter on here can do some back of the hand math. To prove or disprove my tunnel vision.

Key points from the reports:

1. **Production and Efficiency**: - The company commenced a second shift in January 2024, doubling daily production and helping to lower unit costs in the future
2. **China Distribution**: - Bubs appointed two new distributors in China and expects to clear discounted inventory by the end of FY24, which should stabilize the market
3. **FDA Approval**: - The costs associated with obtaining FDA regulatory approval were substantial, around $9.9 million, but these expenses are now behind them
4. **Capital Works**: - Recent capital raising enabled Bubs to expand production, with a significant increase in utilization from 31% in June 2023 to 70% in January 2024
These points suggest that the company is moving towards improved efficiency and reduced overhead costs, supporting the expectation of breaking even or achieving profitability soon.