>>102763764
bear in mind it's a 2.5 million deficit, they were only getting 3.6 million in revenue total and their COGS, which apparently also includes talent renumeration and paying their managers on top of usual costs of shipping and producing merch, eats up 3.2 million on it's own.

The moral of the story is that just because pokemon got to be the "most profitable franchise" off the back of merch doesn't mean that you can run a company that eats up 2.5 million a year by only taking 50% of the merch rev