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.
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