It depends what you're factoring in to the cost of production. There's the physical cost of components, manufacturing and shipping (COGS), but also the relatively fixed costs of staff wages, rent, marketing, R&D, studies, etc. And possibly debt repayments if they need more funds to expand production.
I expect they would have based their cash flow forecasts on a small margin to begin with - perhaps even negative - which would increase with sales volumes. Seeing phrases like "business has been far bigger than we anticipated" from Nuheara is a massive boon to shareholders.
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Ann: Nuheara Expands Retail Partners with Amazon and Brookstone, page-85
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