Three friends got together to launch a product company. In the first year they assessed the product idea, built an MVP to validate the idea, put together a team to build the product. In the second year they started selling the product to a few companies and in the third year they increased their sales to even more customers.

In the first year the company did not make any profit. In the second year they made a small profit and in the third year they made even more profit. At the end of the third year their reached the break-even point.

Based on the description given above, explain how the company claims to have made profit in year 2 while the break-even was reached only at end of year 3