The tie up with Luminous will make increasing margins on existing products more difficult for a few years imo. New products will be more profitable.
"Luminous and the Company will enter new manufacturing arrangements such that after completion of the LIFX Acquisition, Luminous will continue to manufacture 100% of the existing LIFX smart light products until all outstanding amounts under the LoC are repaid. Following repayment of the LoC, Luminous will continue, for the remainder of the three-year term, to manufacture at least 80% of LIFX's existing smart light products and if won in a competitive bid process, at least 50% of any new LIFX smart light products that come into production post-completion of the LIFX Acquisition."