For me there are three key pieces of information in this...

For me there are three key pieces of information in this release:

1) Gross margins of 40% in the June quarter
2) Cash flow break even in the June quarter
3) Higher sales and profits in the second half of the calendar year

For the half year to December 2016, overheads less non-cash items such as depreciation and share based payments were $5.7 million, or roughly $3 million per quarter. Therefore, gross profit should be roughly $3 million in the June quarter and revenues will be about $7.5 million.

Assuming overheads remain steady (which is unlikely especially given the proposed Nasdaq listing) then every $10 million in incremental annualised revenue should translate to $4 million in profit before tax.

revenue pbt
$30m   $0m
$40m   $4m
$50m   $8m
$60m   $12m