EDE 0.00% 0.2¢ eden innovations ltd

Ann: OptiBlend - US Market Experiencing a Significant Upswing, page-23

  1. 7,705 Posts.
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    The total lack of understanding even even the most basic business principles (margins, overheads, fixed vs variable costs etc) on HC never ceases to amaze.

    The Optiblend kits sell for ~USD60K. The gross margin is probably ~15K per unit.. For 300 kits the revenue is just $4.5million or barely 1/3rd current annual loss.

    So you actually need to sell a minimum 4000 to make $60 million revenue or $15 million gross margin (enough to break even). To do that That involves a far larger (>20x) payroll, a vastly bigger factory, machinery etc etc. which involves far greater expenditure. So the real minimum sales is probably closer to 10,000 units a year with the current bloated corporate structure,

    The reality is that EDE is decades away from profitability at current growth rates.
    Last edited by PigsMightFly: 28/07/21
 
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