I'm trying to understand this company's gross margin. Based on...

I'm trying to understand this company's gross margin. Based on H1 sales of $14.1 vs Cost of raw materials $5.5, the GP is about 61%. Guidance in H2 sales is $16-$20m tyherefore at 61% margin that will give a Gross Profit range of $9.8 to $12.2m. The rest of their fixed overhead for H1 was $11m so if it stays about the same they will report a H2 profit of between ($1.2m) to $1.2m. I am assuming the non raw material overhead items reported in H1 results to 31 December 2023 will not change much but not sure if there are other variable costs to sales for this business. For example, do staff costs rise direclty as sales rise? Are there other costs that rise in the same proportion to sales? I cannot see any but haven't been following this one for long.

If costs remain stable then any result within their guidance looks like a strong improvement and good path forward, particularilty now that they are holding a good amount of cash and seem to have some strong prospects across each of their segments.

Happy to get some feedback on my rough calcs above

From the way I view this, it looks like some good upside with less down side at this point in time. I'm happy to keep buying at these prices.