Do any of these so called "experts" on CAGR know anything about business and finance?
Name 1 company that has shown a profit in it's first year of operations. It just doesn't happen, there are too many start up expenses in the first couple of years to possibly show a profit and positive cash flow.
The reason why the gross margin went down significantly is not because they are selling each unit at a loss, it's because there are other expenses associated with "Cost of Sales" (thats a term we accountants use). Cost of Sales includes inventory purchases, freight and shipping costs, direct payroll associated with sales, and could also include trade shows and showcases directly related to sales. Put all that together, and yes it will reduce their gross margin when they only had inventory purchases in the prior years.
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