kist, good comment, it's not a dumb question.My understanding...

kist, good comment, it's not a dumb question.

My understanding is that because these quarterlies only are there to record cash in and cash out no allowance is made for accruals of revenue not yet received or expenses not yet paid. Thus they can be lumpy and a bit misleading with a fair bit of "lag".
The half yearly report next month will be very interesting as it will naturally contain all accruals for revenue and expenses up to 31/12.

In this quarter my guess is that the cash expenses were lower than normal, cost of product from the manufacrturer was higher (because of the increased sales as you point out)and the two have more or less cancelled each other out.
Although we do not have any idea of the cost of each test from the manufacturer (and probably never will)it obviously is not high and at this level of sales it is not a major amount.

regards, EB