Had another read of the letter just now. Point 3 in bold, below, is quite concerning. Is this common within similar industries??Getting to Profitability I’m often asked about the path toprofitability for LIFX. It is instructive to look first at last year, and thenturn to 2019. Last calendar year (CY2018 revenues of A$38.5M), LIFX would havebeen profitable were it not for 1) the unexpected addition of the Trump tariffs(which took a standard 2.5% import tariff from China to the US up to 12.5% -remembering that the US is the single largest market for LIFX), 2) theadditional cost of air shipments (vs. sea shipping which cost nearly A$1M inadditional shipping charges) and 3) nearly A$10M of orders from retailers that were unable to befulfilled or delayed due to capital restrictions with supply.
