Bemax Inc (BMXC)

[apachetowin5]

Depends how costs change with order size. Per the 10k:

3 months ending Nov 30 2016:
rev=23,031
Cogs=122,182

6 months ending Nov 30 2016:
rev=115,153
COGS=248,182

Note the change in Rev/COGS ratio.

It's not at all unreasonable to assume that Bemax has been selling small orders at a loss in order garner large orders. And what's unprofitable on a small scale may be highly profitable on a large scale as manufacturing costs tend to decrease substantially.