A company selling potatoes would not include land in COGS. Land is a a fixed asset. Even if a farm rented/leased the land, the payments would fall under OpEx, not COGS.
Seeds, pesticide/fungicide/herbicide, direct labor, water and electricity for irrigation, etc. would all be COGS.
Would it make sense to spend $1 billion on land to grow $1 million worth of potatoes every year? Probably not. But that doesn't mean you couldn't sell potatoes on your $1 billion land at a positive gross margin if revenue exceeded COGS.
This is the AI debate that is impossible to have when people refuse to educate themselves about basic financial accounting concepts.
ARR based on October revenue 400% higher than GAAP revenue.
Net Revenue Retention: 1,000% After all one seed potato creates 10 more potatoes - infinite replication! We estimate soon we will 10x the no of potatoes in the world.
EBITDA - the severe frost last year is a one-off non-recurring event, fertiliser is an R&D cost, seed is a growth investment. Land rent is not considered a core cost and therefore removed. Depreciation, interest, taxes all taken off the figures because somehow they don't count.
the gross margins on growing potatoes is very high, if you exclude all the other costs needed to get the potatoes to market.
Think about it, you take some potatoes you had left over from last yeah, dump them in the ground and wait 9 months. Boom pure profit.
This of course excludes the cost of the land, machinery needed to plant, till and harvest, storage, pesticide, fungicide and herbicide.
Then the transport, cleaning and packaging.
If you arbitrarily cut out all the bits of the business needed to make revenue, everything is a profit.