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Go-To founder Zoe Foster Blake has an option to sell the remainder of the business to BWX.Credit:James Brickwood

“BWX requires additional time to prepare the company’s appendix 4E due to certain revenue recognition issues for FY21 and 1H FY22 and the likely impairment of its intangible assets to a level significantly below their carrying value as previously foreshadowed to the market on 28 June 2022,” it told the ASX.

“These matters mean the company is currently unsure whether or not it will meet its full-year guidance for FY22,and the company may need to restate its results for the FY21 and 1H FY22 financial years.”

BWX shares last traded at 63c,valuing the whole company at $126 million,compared to a year-high of $5.56.

Entrepreneur and author Foster Blake made headlines last year when BWX acquired 51.1 per cent of her business Go-To for $89.9 million cash.

The deal included an option to sell the remainder of the business to BWX as early as September 2024. The value of the option is recorded in BWX’s accounts at $93 million,but the sale price depends on a valuation of the Go-To business at that time.

Go-To is one of the businesses that could see its valuation slashed when the BWX accounts are released next month.

BWX shares dived more than 40 per cent in June,after it announced a deeply discounted capital raising at just 60¢ a share and admitted that challenging retail conditions meant it had to reduce debt.

It also needed to change business practices that included overloading its sales channel with more goods than its distributors could readily sell to consumers - a practice known as channel stuffing.

BWX chief executive Rory Gration told investors that Foster Blake’s option to sell the remaining 49.9 per cent of Go-To to BWX was one of the reasons for the drastic restructuring plan.

“That’s a critical reason to get net debt down as soon as possible,” Gration said. “We can’t just ignore it and deal with it in two years time.”

Go-To has garnered a devoted customer base through savvy use of Foster Blake’s extensive social media following,with the brand amassing more than 1 million followers.

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