Having read the whole thing, I... honestly don't know. Is this fiction, or a true story told in a fictionalized style? What computer business are they in that they go from profitable to unprofitable in three or four days and this is a call to fire the entire company in two days? World's shortest runway or what?

If I'm not mistaken the business was iPhone apps. Honestly it sounds to me like sales dropping below B/E was just a good excuse to break up the startup, clearly the breakdown of the founders' relationship would have forced a change sooner or later. It seems both founders wanted out and if that's the case then why waste time when you're cash flow negative, better to cut your losses early so you still get something of value out of the startup.

Of course I could be completely mistaken and I think we'd all appreciate a comment by Max to clarify, if he's up for it.

Apparently you are not familiar with maxklein.

I really am not. Could you give me at least a hint in what sense you meant that?

That's exactly how he writes. "Is this fiction, or fact? Or stylized, fictional-sounding fact?"

They set up shop in China. As sales drop, a girl comes along. Founder likes girl, co-founder likes girl, drama ensues, co-founder quits.

perfect summary.