Ann: Quarterly Activities and Cashflow Report, page-21

Did you happen to miss this line:

"Cash expenses and investment for the group was $1.6 million for the quarter which included approximately $500,000 for our product inventory"

Did you therefore forget to add back $500k for inventory?

Think there's a few things missing from your overview mate

Fair enough, cash loss - not great. But figures if you want to do the adjusting calcs:

$544k accrual income
$847k - $500k inventory build = $347k direct cost of production

I see a 36% GP before overheads on these numbers which is some progress. Plus further cost cutting - which has been sought for quite some time.