Progressive Care Inc. (OTCMKTS:RXMD) Jumps On News
Progressive Care Inc. (OTCMKTS:RXMD) exploded into action yesterday, after announcing that last few months have been its best ones to date.
Evidently these last two months have provided the company with its strongest prescription revenues so far, with April bringing in a solid $0.9 million and May – another $1.4 million in revenues. This news certainly caught the investors’ eye, as it gave reassurances that RXMD is not idle. But is that enough?
Let’s take a look at the company’s latest financial report, which appears to be fairly up to date in spite of the “limited information” tag on RXMD‘s profile page on the OTC Markets web site:
- Cash – $127 thousand
- Total Current Assets – 788 thousand
- Total Current Liabilities – $2.7 million
- Net Sales – $3.1 million
- Net Loss – $294 thousand
Diligent investors would have noted that RXMD‘s net sales for the quarter ended March 31, 2015 are not really much lower than what it is boasting right now, and that said quarter didn’t really bring RXMD profit. That being the case, what’s to say that things will be different this time around?
The fact that the company did boast about its revenue but neglected to mention how said revenue translates into actual profit supports the above-mentioned suspicion, but is by no means the only thing that’s amiss with RXMD.
A more careful look into said most recent financial report also reveals that RXMD has given an alarming number under “Notes payable” – $1.6 million. True, said debt does not seem to carry the toxic conversion provisions that are characteristic for ORC Markets pinksheets pharmaceutical companies, but it still represents a danger to investor value, because it threatens to dilute RXMD‘s stock even further.
And dilution is something that RXMD‘s shareholders have suffered on a regular basis in the last few years:
As of December 31, 2013 RXMD had 28 million shares of common stock
As of December 31, 2014 RXMD had 41 million shares of common stock
As of March 31, 2015, RXMD had 65 million shares of common stock
The worst part is that with an authorized share cap as high as 100 million and so much outstanding debt, there is still plenty of room for investor value to be swept down the drain. This is something investors should definitely take into consideration before committing to RXMD stock.
