Queens play-off rivals Rangers have reported losses of £2.6m and must pay Newcastle United £500,000 if promoted.
The figures were revealed in the club's interim results, posted to the stock exchange on Tuesday morning.
Operating expenses, excluding amortisation of players' registrations, decreased by £0.9m compared to £15.7m for the same period on the pevious year.
The decrease included an overall reduction in costs attributable to the retail business of £0.4m. Staff costs reduced by £0.3m to a total of £7.1m for the period.
Sponsorship revenue fell by £0.3m to £0.4m and it was revealed that if Rangers are promoted to the Scottish top flight, they must pay Newcastle United £500,000.
They must make the payment to the English Premier League club, owned by Sports Direct boss Mike Ashley, after January loan deal which saw Newcastle loan five players to Rangers.
As part of those contracts, should Rangers gain promotion in season 2014/15, they will be liable to pay a total of £500,000 to Newcastle United.
Interim chairman Paul Murray said he wanted the club to "be back at the very top" by 2022 despite there being a "massive rebuild" required at the Ibrox club and pointed towards youth development as key to future success.
Mr Murray said: "These results are historical and relate to a period before the new board took office. I wish to draw shareholders' attention to the fact that these interim results have been reviewed by Jeffreys Henry LLP.
"I have been informed by Deloitte, the existing auditor, that they informed the previous board of their intention to resign following the June 2014 audit.
"The previous Board chose not to announce this nor did they find a replacement for Deloitte. With limited time to have these results reviewed the Board asked Jeffreys Henry to perform the exercise as Independent Reporting Accountants, not auditors.
"They have previously carried out work for the club and therefore know the finance functions well. The board will make a further announcement on this subject once we have found a replacement firm for Deloitte.
"The new board's focus is on the future. We are in the process of developing a business and funding plan which will help us rebuild the club and ensure it enjoys football and commercial success in the future.
"We will work closely with our shareholders, supporters and other stakeholders to achieve our vision of building a modern football club founded on our traditional values and standards.
"The recovery process will take time but if we work closely together we are confident of success."