Agreed. Also higher quality watches would mean higher price...

Agreed. Also higher quality watches would mean higher price point and then you are directly competing with Apple. Apple have a 'family setup' now, which has similar features to the Spacetalk watches. Spacetalk is targeting niche markets in the pre-teen and elderly age groups to avoid direct competition with companies like Apple and the business has pivoted to an "ecosystem" for family safety rather than a device sales business. Recurring revenue from mobile network subscriptions and app subscriptions has much higher profit margins than selling hardware. Hence the goal of 20-25m ARR.