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I agree in that I don’t think they’ll go private, but it’s not like they need cash right now. The new combined entity is sitting on plenty of it for their current size.
Ding, ding, ding
Well the $1 million questions remains, now that we’re a part of NextPlat, now what?
Do things finally start moving into motion or do we get continued silence as they keep collecting interest on all of their cash in the bank.
Well it’s official, everything was approved.
We at least still had investor calls under Jay. Would still love to know what all happened from August 2020 (Mars’ departure) until NextPlat came in. All that S1 talk for nothing.
Not sure I understand how it could be related to a vendor. The intangible asset popped up after NextPlat took over as majority owner and started including RXMD in its financials after 6/30 last year. It should be related to that.
That intangible asset was grossly over valued and now they still have to take like a million dollar hit on that every hear over the next four years.
Did the same person who estimated the intangible asset do the valuation on RXMD?
What continues to be funny in all this is that the business is doing as well as ever. All those new 340B contracts have revenues and margins both up. Take away these paper impairment losses, and we have profitability. While not substantial there is a growth trajectory.
So it’s comically sad that the price is as low as it’s been in years (pre-split). That just comes down to failure at the top, imo. No marketing, no communication to shareholders.
Once again an incredible quarter by the company overshadowed by a stupid goodwill impairment loss. They’re profitable without that.
Well it’s been reopened
I go back to that as well, but two years of inaction and a slow dragging share price makes you wonder if these guys actually have a plan.
With the big three now all gone (Armen, Jay, Mars), who knows what will happen once the merger is complete.
My ultimate disappointment is that they chose not to partner/merge with another healthcare company.
Hmm…was that a mutual decision or did they force him out?
Looks like the RXMD Telegram channel is now locked. There’s been no activity other there for several months now though.
The company itself is fine, but I do wonder what will become of it once the merger is completed.
Unfortunately our CEO has not laid out a vision for the future to investors in nearly two years.
The confusing thing with ferandez is that it’s now almost two years with him as CEO and he’s done basically nothing to improve the company. I can’t necessarily even credit him for the increasing revenues because they were already shifting more to 340B before he took over.
Why invest all this money in RXMD and still not make any moves or even try to promote the company? Company is in its best financial position, possibly ever, and we’re below a penny pre-split. That’s all on Fernandez, imo
1000% agree with everything said/asked here
How I think company should be valued versus current valuation is obviously two different things.
A big problem is the only significant news announced from last two years was a reverse split. No conference calls. Barely any PRs. Market has forgotten about RXMD. You go silent on the OTC, price will reflect that.
Will things finally change after the merger? Hopefully so, but we’ll see
Speaking just for RXMD only. Not the soon to be combined entity.
You can cherry pick a number of ways to assess a company’s valuation. I like using a basic market cap of 1-2x annual revenues to serve as a baseline. At current O/S, that’d be a PPS of $10-$20.
$20 would be around 10 cents pre split. I don’t think that’s outlandish to ask for at all.
A $9.5 million market cap currently is an absolute joke for an OTC company on pace to make $60 milllion in revenues this year
I don’t think remaining quiet for another 45 days will be difficult for these guys….
I wonder if there is some seller’s remorse there. If I were him, I’d be irate with how my company is being valued as part of this merger.
Who cares where the cash came from. What matters is that they finally use it. All that cash injected and no major news since Fernandez took over. All it’s been doing is collecting interest.
He started taking a $120K salary last year PLUS he all his stock compensation.
He’ll come out of all this just fine. We all just need to hope he brings us along for the ride
A two second look at the balance sheet would explain
Did nextplat not have an annual shareholder call? I thought Fernandez got dinged last year by the SEC for being non compliant on that. Apologies if I’m misremembering specifics
It certainly makes sense to have same audit firms moving forward and is likely the main driver, but my head canon is this is a fallout from the late filing too. Both companies got screwed because of it.
To say the stock will “never” recover is a bold statement. That’s what old posters like straighttalk and Spider used to say before big runs came after.
I don’t have any skin on the NextPlat side currently, but this price is ridiculous (just like RXMD). They have more cash on hand than the current market cap. That’s rare. Nothing from a financials fundamental standpoint warrants this. Turnaround should surely come.
In my humble opinion, I don’t think more PRs would have done much for PPS. Business is doing fine, but it doesn’t seem like anything major has changed operationally warranting PRs. Yes, they’ve added more 340B contracts, but that’s not going to sway most people. So I don’t think they’ve been purposefully hiding info in that regard.
I’m with SW in that the failure is the lack of conference calls to communicate the future of the company We haven’t had a conference call since Q3 2022. We got a RS over a year ago and then were hung out to dry without much explanation. A lot of people don’t trust Fernandez at this point. Mars was able to generate a lot of trust from investors through regular communication and having a positive future outlook during every CC. And we knew she could be an advocate for shareholders. That went a long way to keep price up even though company wasn’t as well positioned financially as it is now.
Thanks for correction. I keep forgetting about that addition
Just as clarification I believe combined annual revenue will only be about $60 million. RXMD had their second half revenues included in NextPlat’s financials and NextPlat’s annual revenue portion was only about $11 million.
Which for such a big boost to NextPlat’s revenue figures, seems like shareholders are getting the short end of the stick regarding potential share conversion.
A shareholder call would be perfect to clarify all this….
The two combined companies will have $26 million total in cash and hardly any debt. They are very well positioned, and I still like to think that despite the lack of communication lately, there are smart people on both sides.
I believe plenty of good things are still to come here. May just keep taking some time, but I can be patient.
So that was you who sold 3,000 shares near the top and helped stop the momentum?
I was talking about break even from a net profit standpoint, not cash on hand.
I don’t think NextPlat is transferring an impairment. The $13 million in goodwill is related to the takeover by NextPlat of RXMD which was finalized July 1. The one confusing thing to me is why the full $13 million wasn’t on the balance sheet as of Q3. They only had $3 million in Goodwill recorded at that time.
I’ll admit Goodwill is outside my wheelhouse. Auditors obviously found certain assets to be valued less now, leading to the impairment. Ultimately it didn’t really impact balance sheet, but of course makes net profit looks atrocious.
I’m willing to somewhat ignore it since it’s a non-cash impact. Same as that $5 million debt conversion expense. Take those two away, and they nearly broke even for the year. Other metrics such as EBITDA were net positive.
My other takeaways are cash on hand is up, revenues up nearly $10 million YOY, and margin trending above 30% thanks to more 340B revenue. Business still side looks good. Management now just needs to communicate with shareholders where they plan to go from here.
I’m guessing it’ll either be out today, or by tomorrow morning at the latest, assuming they do one
I’m still skimming through but they had a $14 million goodwill impairment loss added last quarter. Goodwill testing was reason for filing delay in the first place
Blaming fernandez for all of this is comical. He can only do so much. This whole situation is more on Cecile and the accounting team since they’re the ones working directly with the auditors to get the financials in order. The onus is on both sides though to make sure this gets done on time.
I’m sure Fernandez ain’t happy since NextPlat has had to delay their filing as well. Fingers crossed they decided best to release financials on a Monday as opposed to Friday since they technically have until 15th now.
Lessons will hopefully be learned from this to avoid a late filing again next year.