Looking at the financials, it would appear that the majority of the revenue were from eBook sales. I couldn't correlate the expenses associated with it, but the most likely one would be "Publisher and bookseller fees expense". This equates to a margin of about 0%.
The license revenue which is the recurring one, grew, but is still small given the market cap.
Meanwhile, management are given bonuses which are based on revenue i.e. they get given a bonus for selling eBooks which make no margin.
I sold.
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