I'd be surprised if they reveal too many details. I doubt they...

I'd be surprised if they reveal too many details. I doubt they would want their customers knowing what sort of margin they make...but anyway, its obvious what they make on CFOAM. 4,321cf of production cost them $433,000 for the half...or $100 per cubic foot...I suspect its actually in the $90s now given the improvements they've made. Keep in mind, this is the cost base operating at ~25% capacity so its only going to get better. So external sales at $400cf means at least 75% gross margins.

From what I have heard, PFOAM is much better in $-terms.

Overheads are nothing - no advertising needed (at least so far). As per the prospectus, office/manufacturing space costs $268k per annum. Staff cost $200k for the quarter of which, $100k was director fees for 6 months (so employee costs are more like $100k for the quarter). Admin costs of $272k, which would have included one-off listing fees etc...total overheads are going to be in the order of $1.5mn - $2mn.

So if they just hit prospectus, revenue is $3mn. COGS are ~$1mn. Overheads $2mn. So they are breakeven at prospectus, which was 1/3 of capacity...little bit of interest, some D&A probably has a small loss..but then throw in PFOAM and they are profitable...all with minimal external sales, no big contract wins, 1/3 of capacity.

Way too cheap vs comps and in due course, it gets reflected.