Pacific Health Care Organization Inc. (PFHO)

[Ubertino]

PFHO is NOT a good investment!

During the three-month period ended June 30, 2016, total revenues decreased 45% to $1,249,709 compared to $2,261,105 for the three-month period ended June 30, 2015. For the three months ended June 30, 2016, NCM fees increased by 65% compared to the same period in 2015, while HCO, MPN UR, MBR, and other revenue were lower by 26%, 40%, 78%, 56% and 37%, respectively. The loss of Amtrust North America (“Amtrust”), Companion Property and Casualty Insurance Co. (“Companion”) and a major MPN customer during 2015 has and will continue to have significant negative impact on our revenue during 2016 and until we are able to replace the revenue generated from these customers. Unless we are able to attract additional new customers during 2016, we anticipate revenues will be considerably lower throughout 2016 compared to 2015.