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A comment on SpoonRocket shuts down. Parent comment

Re:SpoonRocket shuts down by drone on Tuesday March 15, 2016 @06:20PM (#11293468)
I think part of the problem here is failing to use correct terminology. We might say, in GAAP terms:

* For 40% of the orders, they achieve a positive gross margin * We anticipate reaching positive gross margin on 100% of orders by the end of year * Even after reaching positive gross margins, non-COGS operating costs are sufficiently high to result in a negative EBITDA

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Re:SpoonRocket shuts down by hkmurakami on Tuesday March 15, 2016 @06:52PM (#11293673)
To expand: non-COGS operating costs would include SG&A costs (Selling, General, and Administrative), among others. It's how a company like Box might have healthy gross margins on its unit sales but be unprofitable due to considerable marketing expenses as it tries to capture market share in a growing market.
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