Because that “revenue” was contributing gross margin. It wasn’t costing them anything. Now if the COGS were greater than the revenue then exiting it would be a no brainer.
But even putting that aside…it’s not like it accounted for a lot of revenue to begin with…and yet 28 months later they still haven’t “replaced” it.
Let’s be honest…if anyone had of said post acquisition, right after he first mentioned the shift in revenue components, that the 2nd quarter 2021 was going to be $2.3 million with that strategy…what do you think would have been the response?