BB's Stock Haven

[Drugdoctor]

Praxsyn-Pharma-$PAWS.09-FINANCIALS-15-Million-2013-100-Million-2014-AUDITED!

I-reviewed-again-the-FINANCIALS-released-last week-$PAWS-is-HIGHLY-PROFITABLE-and-will-be-EVEN-MORE-PROFITABLE-in-the-future!

Here are the numbers, straight out of the filings that I am using.

You can verify these numbers with the link below...

https://www.sec.gov/Archives/edgar/data/1346973/000149315214002171/ex99-1.htm

December 31, 2013
Gross billing revenue 15,551,345
Less: adjustments (8,562,809)
Net billing revenue 6,988,536
Costs of sales (694,180)
______________________________________________________
Gross profit 6,294,356

Folks - that is a GROSS PROFIT MARGIN of 90%!!!

And remember, Praxsyn is using an accounts receivable service to collect the monies owed... They are selling receivables at 20% of GROSS BILLING REVENUE, therefore if their GROSS BILLING was 15.5 million dollars and they collect 20% Praxsyn COLLECTED 3.1 million dollars in PROFITS... remember this profit only cost 694,000 dollars!

Remember... this is OLD 2013 NEWS... So what is happening now???

I get giddy when I type these numbers...

9. SUBSEQUENT EVENTS

At various times between January 2014 and June 2014, the Company factored an additional $47.5 million of its 2014 billings at 20% of the gross amount to the same third party for aggregate net proceeds of approximately $9.5 million to finance a portion of its operations.

Wait a minute! 47.5 million dollars REVENUE already reported for 2014, and Praxsyn only had 15.5 million dollars for ALL OF 2013???

The GROWTH RATE of the spring PRESS RELEASES was TRUE folks!! Remember, this SEC filing is an AUDITED FILING!!

And, there could have been more revenue, as this does not say that is all the revenues generated through June 2014!!

So yes.... This is PROOF POSITIVE that PAWS(PRAXSYN) will generate GROSS BILLING REVENUES of over 100 million DOLLARS in 2014, and, if the growth rates continue, probably a lot more!

Now.... For the sake of the discussion, suppose the second half generates aggregate net proceeds of 10.5 million dollars to Praxsyn! Does everyone realize PRAXSYN will have 20 million dollars in GROSS PROFITS this YEAR?? So NET PROFITS were reported on 15.5 million dollars in GROSS REVENUES in 2013.... Now PRAXSYN has over 100 million dollars in GROSS REVENUES...

But wait... we are talking FACTORING the Accounts Receivables at only 20%. From the filing...

During the year ended December 31, 2013, the Company factored $1.3 million of its 2012 billings at 30% of the gross amount and $3.6 million of its 2013 billings to various factors for 25% to 35% of the gross amount, resulting in aggregate net proceeds of approximately $1.4 million. In connection with these sales of receivables, the Company recorded financing costs of approximately $873,000 during the year ended December 31, 2013, under Interest Expense in the accompanying consolidated statement of operations.

Sooooo, if the company could increase the amount collected on 100 million dollars to 30%, that's an extra 10 million dollars in gross profits - wow..

But.... there's a fly in the ointment...


On June 1, 2012, the Company entered into an agreement with a factor that provided, on a non-recourse basis, an exchange of approximately $2 million of financing for the factoring of $10 million in receivables aging from 2009 to 2011. In connection with these sales, the Company recorded financing costs of approximately $2.6 million during the year ended December 31, 2012 within the caption titled “Interest Expense” on the accompanying statement of operations. Under the agreement, the Company agreed to sell to the factor 100% of the gross amount of each receivable. As collateral for the Company’s obligations under this agreement, the Company has granted the factor a first priority security interest in all of the Company’s receivables. The Company also provided the factor with a first right of refusal to purchase future receivables. In connection with the transaction, the Company paid $230,000 in banking fees, which was recorded as interest expense.


First Right of Refusal Agreements

On May 25, 2012, the Company entered into a fee and first right of refusal agreement with a factoring arrangement organization. The factoring arrangement organization assists companies in purchasing accounts receivable, and funding or arranging for the purchase of accounts receivable. The term of the agreement is for thirty-six months. The factoring arrangement organization arranged for the factoring on June 1, 2012, as discussed in Note 2 and was entitled to a one-time payment of $125,000 upon execution of the factoring agreement. In connection with the first right of refusal, the Company has not provided the factoring arrangement organization the first right for accounts receivable factored to other parties outside the initial factor. The Company estimates that the potential range of exposure is $17,000 to $30,000 based upon the initial fee the factoring arrangement organization received in connection with the transaction disclosed in Note 2. In February 2014, the Company received an inquiry from the factoring arrangement organization reminding them of the first right of refusal. At this time, the Company has obtained independent legal counsel, and in their opinion, the suit has several flaws, which should mitigate some, if not all, of the Company’s liability. The Company will defend the lawsuit vigorously if one is filed. As of December 31, 2013 and 2012, the Company has accrued the minimum amount of potential exposure as it is probable that a loss will be incurred. However, the contract factoring arrangement organization is vague and does not address critical items such as penalty provisions, etc.

So it appears that the 20% factoring company wants to try to force PAWS to keep using them, and PAWS is saying they will fight the first factoring company in court... This is good, as the 25-35% factoring is MUCH MUCH BETTER for PAWS and its shareholders!

Finally - we haven't talked about GROWTH PROSPECTS, all the licenses found in 9 OTHER STATES, and the CONTINUED GROWTH in California... With GROWTH comes ECONOMIES OF SCALE, and MORE PROFITS... What if??? PRAXSYN can INTERNALIZE ACCOUNTS RECEIVABLE COLLECTIONS... Surely, with so many MILLIONS OF DOLLARS at stake, they will be able to either get higher factoring deals on an ongoing basis, or INTERNALIZE the collections of Accounts Receivable to MAXIMIZE the PROFITS of the business!

Absolutely amazing folks... We are talking GROSS PROFITS in the tens of millions of dollars and probable NET PROFITS in the MILLIONS OF DOLLARS - for a stock valued at .09!!!

I really don't think the 10Q filing for first quarter is really going to reveal a lot more information on REVENUES AND PROFITS than we already got from this filing, but it will clear up debts and share structure better... The filing due August 15th will be much better and will give us much more info on how PAWS is really doing.

I believe we end the year with a MUCH HIGHER stock price!