It now goes to a rate of 150% as opposed to 100%, that is what and they will have to figure a new strategy to meet conversion demands.
The fact being discussed here is the 10K and the entire year of performance, the CEO received a six figure salary for $57,000 in gross profit, which is really fictitious considering no overhead is taken out, just product cost and shipping. Real profit here is -$1.8 million for the year after removing all costs incurred in normal operations.
Running a deficit of nearly $2 million dollars here is not justifiable for the paycheck being paid out here.