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For those retail participants keeping score...
Since the PR & 8K re: the loss of CVS/Caremark's revenue stream for Main Ave (BUT, it is important to remember that we do not know whether this loss is temporary vs permanent and we do not know the magnitude of the loss), we have traded over 2.5M shares over the past 5 trading days.
It is interesting to see that even before this precipitous fall over the past 5 days, the VWAP was already in a 3-day losing streak even BEFORE the PR & 8K re: CVS/Caremark was issued.
The VWAP on 3/3 was approx .178. It has since fallen for 8 consecutive trading days, with the approximate VWAP over these 8 subsequent days being:
.175 (3/4)
.171 (3/5)
.169 (3/6)
.150 (3/9)
.141 (3/10)
.132 (3/11)
.123 (3/12)
.114 (3/13)
Bob will need to produce an audited 10K for this conference on the 19th. If not, the conference won't go that well for SCRC. Too much of a drop in PPS recently.
The guys going to these conferences aren't stupid.
Is SCRC even pump and dumpable again? We know Joey Z and the gang are looking for one last rodeo, but given the stain on SCRC, can we ever expect see a quality P&D again??????????
I had never heard before that 3/31 filing date was based on company size
CHP, not long ago you said that .14 was the new .08. That is why I made that comment. Sorry but I couldn't resist.
For those retail participants keeping score...
Since the PR & 8K re: the loss of CVS/Caremark's revenue stream for Main Ave (BUT, it is important to remember that we do not know whether this loss is temporary vs permanent and we do not know the magnitude of the loss), we have traded over 2.5M shares over the past 5 trading days.
It is interesting to see that even before this precipitous fall over the past 5 days, the VWAP was already in a 3-day losing streak even BEFORE the PR & 8K re: CVS/Caremark was issued.
The VWAP on 3/3 was approx .178. It has since fallen for 8 consecutive trading days, with the approximate VWAP over these 8 subsequent days being:
.175 (3/4)
.171 (3/5)
.169 (3/6)
.150 (3/9)
.141 (3/10)
.132 (3/11)
.123 (3/12)
.114 (3/13)
It is easy to see that for the first 3 days of the decline in VWAP, the daily decline was very small, which is indicative of a stock going thru a slow bleed trying to maintain support -- but in a very delicate and fragile situation where news one way or the other will likely send it soaring or crashing.
And so it is of no surprise that we see the next 5 days of the declining VWAP be of much greater magnitude each day -- as the beginning of this 5 day period coincides exactly with when the bad news in the PR & 8K re: CVS/Caremark came out.
What is REALLY interesting is that the daily declines in the VWAP this week ever since the PR & 8K came out has been EXACTLY THE SAME: A drop of exactly .009 each and every day.
Granted, my VWAP numbers are estimates, but I am applying my estimating methodology consistently so each day is still a fairly reasonable apples-to-apples comparison w/regards to the VWAP.
It may simply be an eyebrow-raising coincidence... ...or it may be that the big seller each day has actually been the same person each and every day (or group of similarly-positioned individuals) who are trying their best to manage their dumping in a methodical and controlled manner so as to not cause an all-out cratering too quickly (yes, folks, as bad as the drop has been, it could have been a lot worse)... ...but again, it may simply be a head-shaking coincidence that becomes the stuff that urban legends are made out of, LOL...
I still am not sure why this pulled back so radically
Alleyba says...
...that he believes there is light at the end of the tunnel.
Alleyba believes that this stock will soon turn around shortly and get back to where it was.
No one I know that has the stock is selling
I am calling a bottom .1113 scrc right here right now.
In order to sell you need a buyer right?
I think .09 will be the new .09
.I sold today...I was the cause of it dropping that low..
just going by what I have read elsewhere where it seems there is a direct line to Bob. I hope is does come out sooner rather than later.
Gregory FCA will have the 10K and be pushing it and getting Bob ready for this event. Usually you see a little bump in PPS and volume during and right after events like this. Preparation is key here. A good 10K and solid presentation should work wonders here.
This is due a nice bounce play momentarily. I'm betting some heavy selling will try and pierce it below .10 only to bounce up to .14 and settle in the .12s awaiting for further information.
On how many shares traded the last two days? C'mon. It's easy sp manipulation. Eyes do need to get on the stock but I hardly call it a true sell off and tank.
So the prevailing thought a few weeks back as that .17 was the new bottom and here we are, at this moment, at .135. Any thoughts on how much more we slide here?
it is my opinion that .14 is now the new .08 -- meaning that in the absence of a total collapse of the company or a sudden mass dash for the exits of the remaining .05 PIPE shares, I do not foresee anything that would bring the sp down below .14
Its opinions like that is why this company will do better out of penny land.
Looks to be heading back down to 10th AVE.
Why the 15% decline today? Heavy volume, lots of selling...this is very discouraging as I thought it had finally turned the corner. Are the notes still flushing through or is it something more such as the CVS news? Any thoughts on where it goes from here...
Cvs has scared the weak people out. Short term blip.
People are forgetting the two new pharmacies which will be coming aboard. They will more than make up the loss of Cvs to main avenue.
Do we know what the % of Main Ave is CVS? Also, the 8K wasn't specific as to the terms of the break. Is it immediate or over a period of time? Does the contract stipulate that CVS needs to give a specific notice? Will CVS be bound to the contract until arbitration is completed? Until these are answered, calling sellers "weak" is a bit premature.
If it is just CVS related then why didn't the sell-off happen Friday when the news was announced?
my suspicion is that the stock price will not react that much next week with the typical low volume. Whether quote good or bad news has come out, the stock price does not react very much. Especially saw this when MAV went down to $3.1M in Jan...not much selling or deterioration in stock price. Sometimes with these OTC stocks, there is a huge uptick in buying and change in stock price for no apparent reason - meaning, not PR related.
Let's say MAV's revenues realize a loss of 10-30% (just a guess), and SCRC averaged $4M each month. Monthly revenues would now be $2.8M - $3.6M, if SCRC acquires interest in two additional pharmacies generating the same volume, total monthly revenues could top $6M each month.
let's say we do 4M in several months and these other 2 pharmacies have 1099 reps @ 55% commission rates that would be spectacular to our bottom line for example:
1. 4M @ approx 12% currently is 480k per month 65% commission
2. 4M @ approx 22% net ( as I am assuming 55% commission is 880k net income on same 4M!!!!!!!!)
found this doing some DD this morning! The 25th Annual Investor Conference hosted by Wall Street Analyst coming in two weeks March 19, 2015 in NYC!
Yes Bob stated 2 -3 weeks. Radio interview was taped in January so its been a min. of 5 weeks so far. Whats the hold up?
@flyers,
Thanks for notifying the board of the 8-K.
Typically, the language of a 8-K is most often simply a copy/paste of the related PR that is issued either immediately before or immediately following the filing of the 8-K.
But what is interesting is that in this particular case, the language used in the PR is quite different. Here is the PR that was issued in advance of the 8-K:
TYSONS CORNER, Va., Mar 06, 2015 (BUSINESS WIRE) -- ScripsAmerica, Inc. (OTCBB: SCRC), a leading provider of a range of specialty prescription and over the counter pharmaceuticals and medical supplies, today announced that it has signed Letters of Intent to acquire an equity interest in 2 additional specialty pharmacies licensed to dispense pharmaceutical specialty products in a total of 40 states.
Bob Schneiderman, Chief Executive Officer and Founding Partner of ScripsAmerica, said, "As part of our growth strategy, we believe that making strategic acquisitions of additional pharmacies similar in profile to Main Avenue Pharmacy represent an attractive, low-risk means to expand our geographic presence, leverage our existing investment, and introduce new products to our extensive distribution network. The two new pharmacies are licensed in a total of 40 states and already have a healthy mail order business, bringing us a platform that nicely complements our current operations. In addition, with these additions we also gain the market expertise and knowledge of their management teams, which will serve to strengthen our overall organization."
ScripsAmerica intends to fund the acquisition from existing cash balances or borrowing availability. The transaction is subject to normal due diligence and the completion of satisfactory purchase agreement, with the intention to close the acquisition no later than June 30, 2015.
Separately, Main Avenue Pharmacy received notice from one of its payor insurance companies that its agreement was ending effective March 13, 2015.
Mr. Schneiderman added, "We are already filing for arbitration to adjudicate the ending of our insurance contract as we firmly believe this decision is unjust. While the matter is adjudicated, however, the insurance company has elected to not reimburse its patients who purchase certain of our products from Main Avenue Pharmacy, which will have an impact on their revenues. Fortunately, while any temporary or permanent loss of these reimbursements to our patients will impact our revenues, we still believe our total revenues in 2015 will grow due to the efforts underway to diversify into adjacent and complementary healthcare operations, such as PIMD, diabetic medical supplies, additional pharmacies, and, prospectively, a Physician dispensing program. In addition, we believe revenues from Main Avenue Pharmacy and other lines of business should enable us to generate a profit in 2015."
About ScripsAmerica, Inc.
ScripsAmerica, Inc. is a supplier of prescription, OTC and nutraceutical drugs, delivering pharmaceutical products to a wide range of end users across the health care industry. End users include retail pharmacies, hospitals, long-term care facilities and government and home care agencies. For more information, visit www.ScripsAmerica.com.
cts.businesswire.com/ct/CT?id=bwnews&sty=20150306005720r1&sid=cmtx6&distro=nx&lang=en
SOURCE: ScripsAmerica, Inc.
CONTACT:
Gregory FCA Joe Hassett, 610-228-2110 joeh@gregoryfca.com
On the bad. The question that should be asked is how much business is Scripts getting from cvs/caremark.
Before we jump to any conclusion let's get that info.
TYSONS CORNER, Va., March 5, 2015 (GLOBE NEWSWIRE) -- ScripsAmerica Inc. (OTCBB:SCRC), today announced that the Company's Florida-based pharmaceutical distributor, PIMD International LLC, ("PIMD"), reported $554,411 in revenue during the month of February 2015.
HEY ALL...$250 PER SCRIPT IS RIGHT ON THE MONEY
Alleyba says.........................
.....................nothing is hidden. Read the 10-K. Oh yeah in case there is any question since that occurred in 2013 it is not reportable until 2014 when taxes are filed and it depends how the compensation is calculated
Alleyba says........................
................that all members of this board should keep in mind what an excellent job the much maligned JZ has done in the last 2 years as a consultant for SCRC.
I would like to see over the next 4 months if FCA can duplicate the accomplishments of JZ.
It is an undisputed fact that if not for the tireless efforts by JZ
in raising money for he company
JZ has a lot to do with this companies rise in value.
Aggressive seller so far this morning.
Been doing a little DD On ScripsAmerica I see were heading to Las Vegas April 15th for a very nice EXPO!!!
Again with the criminal stuff? I must have missed the specific evidence proving these people are criminals?
I see you call Mr Zampetti a racist homophobic. What does that have to do with the merits of SCRC?
and please provide a court or criminal record that support your statements.
the number of pipe shares purchased was 22 million not 28 million as posted.
DILUTION UPDATE:
First off, apologies to those who have been requesting this for some time now, but due to the low liquidity we have been experiencing, it simply is of no value to provide updates every few days or even weekly or bi-weekly.
As it has now been a month since my last update posted on 1/25/15, and approx 5.3M shares have traded, an update is now warranted for folks to get a picture of where we are at and what we still face.
As a reminder, understand that there is no exact science behind this and there is NEVER any way to know for sure. That being said, as explained previously, I have found that for penny stocks, there is a statistical pattern/relationship that has historically shown to be tried and true in being a fairly reasonably accurate gauge for this. As such, here is what remains IMO:
• Priced between .06x and .13x ----- 0 shares left ----- started out w/21.0M shares (all gone, IMO)
• Priced at .14x ----- 1.0M shares left ----- started out w/3.1M shares (priced to sell at around .196)
• Priced at .15x ----- 0.5M shares left ----- started out w/0.8M shares (priced to sell at around .210)
• Priced at .16x ----- 1.0M shares left ----- started out w/1.0M shares (priced to sell at around .224)
• Priced at .17x ----- 1.9M shares left ----- started out w/1.9M shares (priced to sell at around .238)
• Priced at .18x ----- 0.2M shares left ----- started out w/0.2M shares (priced to sell at around .252)
• Priced at .19x ----- 1.0M shares left ----- started out w/1.0M shares (priced to sell at around .266)
• Priced at .20x ----- 0.9M shares left ----- started out w/0.9M shares (priced to sell at around .280)
• Priced at .27x ----- 0.6M shares left ----- started out w/0.6M shares (priced to sell at around .387)
• .05 PIPE stock ----- 6-7M shares left ----- started out w/22.0M shares (always priced to sell immediately)
So we can see that the major change is that all the .12x and .13x shares are now effectively gone.
*****************
I noticed that you refer to inner circle as criminals in scrc. How precisely are you referring to? Its contained in your post please answer.
Again with the criminal stuff? I must have missed the specific evidence proving these people are criminals?
The effect of patients deductibles in the beginning of the year are more greatly to effect SCRC numbers percentage wise than to Amgn and Eli Lilly.
So once again we have to clear the air for the distortion of comparison of facts being printed here. As I said once again, this is getting old.
no one cares about July 2013; now it's Feb 2015 and different stock with a much different story.
I believe that p&d was orchestated by money runners
why don´t they change from otc to nasdaq. the pps will be go up
Alleyba had a vision that starting in March we will be over $4m plus again. Alleyba's vision was blurred at end but he saw record setting numbers for PIMD because of the diabetic business
Compound Pharmacy is not facing anything unusual right now. My 37 years in the industry allows me to say with confidence all pharma companies deal with the same deductible issue patients face at the beginning of the year.
Bob always said approval was needed! It's not easy getting CHina to open up and there is a lot of red tape. So now he's on record stating we have approval and the product is shipping in 2-3 weeks. Do you really think he would come on a radio interview and say that NOW just to say it if it wasn't so?
ScripsAmerica's RapiMed Product Receives Registration Approval From the Hong Kong Government
Company's RapiMed(R) Children's Pain Reliever and Fever Reducer Can Now be Sold and Distributed Throughout Hong Kong
TYSONS CORNER, Va., Feb. 10, 2014 (GLOBE NEWSWIRE) -- ScripsAmerica, Inc. (OTCBB:SCRC) today announced that the Company has received registration approval for its RapiMed® Children's Pain Reliever & Fever Reducer from the Government of Hong Kong.
With the registration process complete, ScripsAmerica is now free to distribute RapiMed® throughout Hong Kong and the Company is ready to accept orders from affiliate hospital networks, and representatives of a major health product retailer with over 2,000 stores and over 500 pharmacies.
all of the performance indicators for ScripsAmerica are pointing North. There isn't one revenue stream performing in the negative. With money in the bank, funding from a reputable institution, several profitable revenue streams, and a new IR Team on board, SCRC and Mr. Schneiderman are proving the business model he created two years ago is real and is working. The future is very promising. Now I know there are still those who have doubts, and that's okay. I am confident their concerns will be resolved in the months to come. Yes, it's been a long two years, but it is all coming together now.
@Garcimore00,
In response to your question yesterday re: what the PR about signing up the 500th customer for the diabetes supply segment means to SCRC’s income…
First off, I think it was interesting that NO revenue numbers were PR’d – but instead we were simply told that 500 customers have been signed up. I am curious as to the reason why the revenue numbers FOR THOSE 500 customers were not announced as I would surmise that an initial order would have been placed for all new customers at the time they signed up? After all, BS Schneiderman had never missed an opportunity to PR numbers before, even if they weren’t huge.
In any event, your question is an impossible question to answer at this time. Similar to when Main Ave initially launched, and similar to how SCRC just announced PIMD monthly numbers for the first time, we will need at least 3 months of numbers in order to even BEGIN to make heads or tails out of this revenue stream. Why? Because month 2 will give us our first peek at the rate of growth on a month-over-month basis. And month 3 will be an important indicator as to whether the month-to-month growth we saw from month 1 to month 2 was a fluke or may be sustainable. And then months 4 and 5 will enable us to smooth out the rough edges in our forecasting model.
You will be surprised at how often growth rates for new product launches end up falling within a predictable bell curve pattern. It is why towards the end of Spring last year, based upon the monthly growth rates over the first 3-4 months of Main Ave (in particular, the CHANGES in the rates of growth each month), I projected that by early-Q4’14, Main Ave should hit $5M/month – and it ended up hitting this $5M in SEP, only one month earlier than the bell curve estimated it would.
BUT, specifically for this diabetes-related revenue stream, we can’t make any projections on what having 500 customers enrolled may translate to from a $$$-perspective until we know the following:
• Is it ONLY Type II diabetes that Main Ave is servicing? Or is Main Ave servicing ALL diabetic needs?
• Is Main Ave ONLY providing the SUPPLIES? Or is Main Ave also providing the various drugs as well? As a pharmacy, I would think they would supply the actual drugs as well, but I don’t think we can say for sure yet, especially since the name BS Schneiderman gave to this new business segment specifically included the words “equipment and supplies” and all the PR’s about it have always emphasized the equip/supplies aspect of it.
BUT, unless/until shown otherwise (hopefully the 10K/Q’s will provide more details in the disclosures about this new segment), I will presume that Main Ave is providing BOTH the equip/supplies AND the actual meds since it kinda makes sense for them to do so (after all, they ARE a pharmacy).
The cost for the meds depends on what exactly the doctor prescribes. If you look at the bottom of the report linked here…
http://effectivehealthcare.ahrq.gov/index.cfm/search-for-guides-reviews-and-reports/?productid=721&pageaction=displayproduct
…you will see that the WHOLESALE price for a 1-month supply of the various types of meds vary from $9 to $505. This range is way too broad to try to make any projections at this time. And this is just the list for Type II diabetes. Plus, I do not believe this includes any of the “supplies” that a diabetic constantly needs to buy again and again.
And keep in mind, this is just the wholesale cost to pharmacies. Pharmacies will mark these prices up when they sell to customers, so the revenue numbers will be higher than what you see listed in the link.
AND, another factor that muddies up the water even more is that none of us have any clue what the insurance companies’ agreed upon rates are. All we know is that, as with any health insurance related coverage, the amount of revenues that a service provider (be it a doctor for an office visit or a pharmacist in selling Rx’s) makes on a transaction is LOWER when paid for by insurance compared to when the transaction is paid for at “rack rate” directly by an uninsured consumer.
Lastly, just as with PIMD, although topline revenues always look nice, we need to see for both PIMD and this new diabetic equip/supply segment what the BOTTOM line contribution is, as this is where the rubber meets the road from an investment-thesis perspective.
I know it is not the specific answer you are looking for, but I do not believe that the answer you are looking for exists at this time. We will all just have to wait and see. The future monthly PR’s combined with the upcoming 10K and 10Q should be very informative in this regard.
THAT BEING SAID, just for giggles, let’s speculate a bit. Let’s say that within the $9-$505 per month range, the avg WHOLESALE cost comes out to $250. And let’s presume the margin on the COGS is 50%, so this means that the avg “sale” is approx $500. I have no idea how much the supplies/equip cost, but in searching the web briefly, I think a reasonable guesstimate may be an avg of $50 more per month in sales for consumable items such as syringes, etc.
So that brings our completely speculative guesstimate to $550/mo per customer. At 500 customers signed up thus far, if they all refill their supplies and meds each month, this computes to approx $275k/mo. Not too shabby for a first month. Factoring in zero growth, it is already annualized to be approx $3.3M per year.
Conservatively, even if it doesn’t even double but simply tops out at $500k/mo, this represents $6M/year in additional topline revenues. That’s an additional 11% of accretive revenues on top of the $55k that was forecasted for Main Ave, which is a material increase if our guesstimate is anywhere in the ballpark.
As a slight tangent, if we look at PIMD (again, considering topline revenues ONLY w/o consideration of how profitable they actually are), they reported $137k last month. If PIMD were to also top out at $500k/mo, this would also represent another $6M in sales/year.
Together, the diabetes segment and the PIMD segment would then potentially contribute 22% in additional revenues on top of the $55M that was forecasted for Main Ave. That would be a very welcome sight to see should our guesstimates be anywhere near reality.
IMO, by the end of Q3’15, we should have a much clearer idea of where both the PIMD and diabetes supply segments will likely top-out w/respect to monthly run rates, and whether they will indeed be the bona fide contributors to SCRC’s top and bottom lines that we are hoping they will be – or whether they will simply become another WRx...
**************
Who specifically in joe z inner circle is a criminal?
plus at the end of the filing it saying the deal is terminated, just asking, Go SCRC! Tut
www.otcmarkets.com/edgar/GetFilingHtml?FilingID=10485776
EXHIBIT 1 TO SCHEDULE 13G/A
TERMINATION OF JOINT FILING AGREEMENT
The Joint Filing Agreement previously entered into by and among Ironridge Global IV, Ltd., Ironridge Global Partners, LLC, John C. Kirkland, Brendan T. O’Neil, Richard H. Kreger and Keith Coulston is terminated.
The date of termination was January 22, 2015, and all further filings with respect to transactions in the security reported on will be filed, if required, by members of the group, in their individual capacity.
I think your reading more into this than what is actually provided in the report.
On January 22, 2015, Ironridge Global Partners, LLC (“IGP”) sold all of its shares of Ironridge Global IV, Ltd. (“IV”) to Dragonox Investments, Ltd., a British Virgin Islands business company, whose registered office is Craigmuir Chambers, Road Town, Tortola, British Virgin Islands.
ITEM 5: Ownership of Five Percent or Less of a Class.
Which means less than the 7 million shares your claiming as well as the once again accusation about those core shares.
Its okay to exaggerate a little but 7 million, come on.
ITEM 5: Ownership of Five Percent or Less of a Class.
If this statement is being filed to report the fact that as of the date hereof the reporting person has ceased to be the beneficial owner of more than five percent of the class of securities check the following box: þ*
* As to IGP, John C. Kirkland, Brendan T. O’Neil, Richard H. Kreger and Keith R. Coulston only. IV continues to be the beneficial owner of more than five percent of the class of securities.
What I read is just some hypothetical stories and hunches that don't belong here
I LOOKED INTO THIS 13GA AND IT DOES NOT COME CLOSE TO PASSING THE SMELL TEST AS THERE ARE NO SIGNED SIGNATURES ANYWHERE THIS IS BOGUS, IMO.
Once we hear anything about the Virgin Islands forget about it.
The Virgin Islands make Al Capone look like a Saint.
When I say a manufacturer is more limited in capacity as such, I refer to the fact that space for ingredients must be available, that specialized equipment is required, that electronic items are needed to prevent theft, that careful controls are in place, that behind the scene paper work is necessary etc. etc.. How can you compare this to the requirements of a co. who simply buys an item and ships it out.
No profit disappears in thin air. When MAV profits from lower cost of raw materials, it results in profits that SCRC will show quarterly and annually. If the profit would not be recorded, the IRS would have a field day. The dealings between MAV and PIMD may be eliminated from their books as you say, but SCRC will record any profits made.It is true that PIMD can charge a nickel or a billion dollars, but MAV uses PIMD's cost as its cost for determining profits which only show in SCRC's bottom line.
Lol. So very wrong. Walmart, walgreens, etc are retail pharmacies. MAV is compounding. It's an art and it's making a come back. With all the addiction to pain meds, the allergies, the impact on livers and kidneys, compounding will be growing year over year in sales. Lol.
Pipedream 1, you are correct on your post.
A profit to MAV on a PIMD sale to MAV must be recorded by MAV when the cost of the item is lower than what MAV is presently paying. The difference in costs lowers MAV raw material cost and thus represents an increased profit to MAV
and in turn to SCRC.
By rule, PIMD must sell the item at its own cost and this results in a wash-sale for PIMD.
I hope this clears up the DD.
At long last, a green day, and a break from 7 straight days of declining VWAP's...
...hopefully, today will be the turning point and it will be time for the volatility swing to take the sp back up again...
...technicals are slooooowly improving as barchart.com now show both the Strength and Direction ratings shifting back up into the 40-50% percentiles (Strength rating had been as low as the 20-30% pecentile and the Direction rating had been as low as the 0-10% percentile just a few days ago)...
...if we can get both the Strength and Direction ratings back up to at least the 80th percentile, then I believe that will trigger another wave of technical buying to occur...
Not talking about it offsetting the revenues. It would add to the net income. If revenues declined by $1m, that's about $120k net income. By getting materials from PIMD, it possibly could save $200-300k. Therefore $300k savings minus $120k loss net income, would be an increase of $180k. This is just a hypothetical but the math is sound.
In reading the agreement for the LOC, Does SCRC have to fully repay one draw before it can initiate another?
LOL, see what I mean? And so it begins...
The fact that both PIMD and MAV are now licensed in N.J.is an enormous event. Now, PIMD can ship all the compounding cream raw materials to MAV and thus can add to its revenues.
MAV will in turn probably be able to lower its cost of raw materials and thereby improve their margins.
In addition, PIMD will benefit from MAV requesting all their partners now and in the future employ PIMD raw materials for their creams.
With all the other streams of income developing at PIMD, I would not be surprised to find PIMD surpassing MAV in top and bottom line sales and profits in the near future.
Regarding the $4M LOC...
...First, it is important to remember that it is NOT actually $4M... ...SCRC is permitted to draw down a maximum of 85% of Main Ave's A/R balance, and this is only UP TO $4M.
To put it in perspective, the 9/30/14 A/R balance was $3.2M. The most recent SEP approved orders number was $5.5M. Therefore, a rough ballpark estimate is that A/R constitutes approx 58% of monthly approved orders. This means that based on the most recently available 9/30/14 A/R balance, SCRC would have only been permitted to draw down $2.7M.
Now, fast-forward to present day. We know that JAN-2015 approved orders came in at $3.4M. So if the collection rate remains consistent with what it was just 4 months ago, then the current A/R balance should be approx $2.0M. And so the maximum that SCRC would be permitted to have outstanding on this line of credit is now only $1.7M (85% of the $2.0M A/R balance).
Why is this significant? Because we know that SCRC already PR'd that it spent a portion of the LOC on paying down some higher-interest rate debt.
We have no idea what else SCRC has used the LOC for, not to mention how much of it was drawn down. If it has not drawn down any further amounts then we have no issue. In addition, if SCRC did draw down additional funds, so long as the cumulative amounts drawn is less than $1.7M, then we are fine.
HOWEVER, if SCRC were hypothetically to have drawn down $2.5M because back then it would have been permitted to draw down $2.7M (85% of the $3.2M A/R, remember?), but now because JAN numbers plummeted down to $3.4M -- thereby reducing A/R to $2.0M, and reducing the 85% of A/R limit to only $1.7M... ...well, you see the dilemma here, folks?
This $2.5M that was drawn down a couple months ago when the limit was $2.7M is now considered to be over-drawn and in violation of the terms of the LOC because the limit now has decreased to only $1.7M.
So what this means is that, in the above HYPOTHETICAL scenario, SCRC needs to find a way to paydown $800k immediately to get the outstanding balance down from $2.5M to $1.7M.
If SCRC is unable to regain compliance within the timeframe specified in the terms of the LOC, then the financier will have many options available to it to force collection via either garnishment of SCRC revenues/receivables as well as seizures and liquidation of other SCRC assets.
This is similar to what got SCRC in trouble with Ironridge last year. SCRC needs to make 100% certain that it is able to live up to the terms that it has agreed to and not welch on its word again -- otherwise, shareholders will be subject to Ironridge deja vu all over again...
Both technicals and fundamentals are favorable.
I really look forward to seeing it trade higher in the immediate short-term.
The numbers you are presenting are no where near 12% from 2/2 the close .21 before the announcement to yesterdays close .194, the numbers work out to only 7.7% appr. With only a volume of 1.1M appr. So yes its so far a non-event.
We were at .1089 on 12/12 and made a high close of .2165 on 1/30. We were a little over bought around the .20 and .21 range settle down a bit and closed back up to .21 on 2/2 So that news had or showed any adverse effect of the stock.
Just a little correction of 7.7%
Another pathetic attempt by JOSEPH ZAMPETTI this evening to play down the impact of his criminal securities fraud he engaged in against SCRC shareholders:
There is a big difference when the stock moved in 2013 only 7m shares were in the float and most had stock at .25 area on the way up to $1.99. so 7m@ .25 is about 2m dollars not a lot of $$$$.
However, wall street read right into it.
It was a non event.