Holy crap. Have you guys read the 2010 Q4 entry in the company history part of their page?
Zu hires venture capitalist Kristian Pettengill as CEO, hired to develop Zus business and position it for outside capitalization. Unknown to Sean, Adam and the core of Zu, Kristian is moving Zu down a road where Kristian benefits but at the expense of Sean, Adam and Zu. Kristian Pettengill establishes terms with all suppliers, moving Zu from being cashed based to accrual. And having fiduciary and business responsibility Kristian unilaterally doubled the new accountants salary, tells her not to pay suppliers, and further instructs her not to bother Sean and Adam with these details. All core Zu people are distracted, kept very busy training and coordinating all the new hires and product productionincluded Sean and Adam. All core people are working insanely long days trying to keep up with fourth quarter sales, on top of everything else. Kristian focus on revenue and pays no attention to profit, running obscene discounts on products, damaging Zu value and leveraging short term cash flow. Kristian Pettengill falls short on all responsibilities and promises. Adam and Sean are noticing big problems with the running of the Zu 13-days of Christmas promo and ask for a complete review of position, he is laid off. Zu agreed that K.P. could go to the CES show in Las Vegas to follow through with his meetings with likely investors. Two days before the opening of CES in Las Vegas, Kristian Pettengill is gambling with new creative hire Chuck Williams, playing $2,000 hands at the blackjack table; Adam and Sean see unauthorized transfers in Zus bank account, learning later that Kristian has sweet talked his way back into the account. Sean and Adam realized they have a big problem, that Kristian has not positioned Zu for funding, likely has no potential investors, and has not built a credible business plan. Kristian Pettengill is fired the day before the start of the show. Ron, Simon, Chuck, Sean, Adam, experience the longest show of their lives, realizing that under Kristian Zu had gone from being in the black to being upside down several hundred thousand dollars.
THAT explains quite a bit of the bizarre sales strategy...