Ann: October Trading Update, page-12

The biggest plus for me is that AMS is guiding for ongoing costs to be down by approx. 30% long term. Based on AMS's 30 July 2020 ASC statement about the cost based being temporarily reduced to $1.0M per month, the previous cost base was about $2.5M / month (fixed costs I believe). Assuming fixed costs go down by 30% long term, the new fixed cost base is more like $1.6M / month, a long term saving of $10.8M per year. I expect that variable costs do not change.

Does anyone with an accounting background know exactly which costs are included or excluded from AMS's "cost base" as mentioned in their 30 July 2020 ASX statement? I note that in FY20 Annual Report the "Cost of Sales" was $28.64M and "Payments to Suppliers and Employees" was $63.13M.

That makes the $6M revenue for October look even better. On current run rates, AMS should be comfortably cash flow positive from now on.