Progressive Care Inc (OTCMKTS:RXMD) Jumps On Profits Announcement
Progressive Care Inc (OTCMKTS:RXMD) was pushed 23.46% up the charts yesterday, after announcing the filing of the financial report for its first operationally profitable quarter in the last 5 years. The ticker is now seating comfortably on the penny threshold – but will this state of developments endure?
Only time will tell, but at the end of the day, there are more than enough reasons to doubt that it will.
True enough, RXMD‘s balance sheets currently look a lot better than they did a couple of months ago:
- Cash – $366 thousand
- Current Assets – $1.2 million
- Total Current Liabilities – $3 million
- Quarterly Net Sales – $3.3 million
- Quarterly Net Loss – $365 thousand
Although said report shows obvious improvements, there are some obvious red flags as well. Investors should duly note that RXMD is still having trouble making ends meet. In spite of all the boasts, it is still in the red – and that is by far not its only shortcoming.
As the report clearly states, it still has $1.4 MILLION worth of Notes payable, most of which can be converted into shares and dumped on the market, drowning investor value in the process.
And, suffice it to say that, as a result of the ceaseless downpour of conversions, the company’s share structure looks even worse for wear now than it did four months ago:
- As of December 31, 2014 RXMD had 41 million shares of common stock
- As of June 30, 2015, RXMD had 106 million shares of common stock
To summarize – RXMD investors really do seem to have something to be happy about this time around – but they also have a lot of pitfalls to be wary of. Rampant dilution is one of them, and a serious one at that – which is why caution is advised when dealing with RXMD stock.
