Bemax Inc (BMXC)

[I-Glow]

Why did the CEO write off $715,000 in bad inventory in the last quarter.

Why was the Revenue only $24,000 in the quarter.

Remember the BMXC press release about the $1.1 million contract with Bethel.

"This new purchase order resulting from the long-term supplier agreement filed on November 16, 2015 is the first tranche of purchase order in 2017, with Bethel Imports paying for each consignment before shipment by Bemax. Bemax expects to complete shipment of this order in Q4 2016, which set the company on track to meet its projected revenue for the current fiscal year."

As you can read the CEO expects to complete the shipment by the Q4 2016 - the 2016 Q4 is due on August 29, 2017 - so we will see if she fulfills the promise and since the orders are prepaid there should be at least $1.1 million in revenue for Q4.

Then the CEO stated: "The size of this purchase order clearly reaffirms the quality of our private-labels and eliminate the need for financing."

So much for the nonsense about eliminating the need for financing - because in less than 2 months she obtained another $384,000 in toxic debt.

IG