RE:RE:PKK Updatemy first reaction was why the hell did the logistics transactions drop precipitously from $550 million in Q3 2020 to $15.7 million in 1st half of Q1 2021. Then it occurred to me that this is a profitless business as long as co. remains outsourcing 100% of ops so who cares how many transactions are done. If co. does some insourcing the gross margin will increase to 30% per CEO interview so a lot fewer transactions are required to generate more gross profit. Even so, this segment of the co. will be dwarfed by the other segments which are much higher margin.
| | Sept 2020 actual | Q1 2021 (est) |
| | Outsourced | Insourced |
| Transactions | 550,000,000 | 31,400,000 |
| Fee | 2.45% | 2.45% |
| Revenue | 13,457,371 | 768,294 |
| Gross margin | 0.535% | 30.0% |
| Gross profit | 72,024 | 230,488 |