ScripsAmerica Inc. (SCRCQ)

[coolerheadsprevail]

my understanding is their expenses are something like/roughly speaking $150k/month.

Your understanding is once again wrong.

Per the 10Q:

$ 117k Royalty Exp
$ 96k HR Exp
$ 81k Professional Fees Exp
$ 10k Consulting Fees Exp
$ 227k IR & Marketing Exp
$ 81k General Exp
$ 214k Share-Based Compensation for Additional G&A Exp
$ 83k Interest Exp
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$ 909k TOTAL CASH-BASED EXPENSES FOR Q1
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Divided by 3 yields a TRUE cash need of $303k/mo.

And this doesn't even include the $813k in Financing Costs that SCRC incurred during Q1. We have no visibility on how much of this $813k represented costs that would normally have been payable in cash but ended up being paid for via additional shares. Adding this $813k brings the $909k up to potentially $1.722M for Q1, which computes to $574k/mo in cash needs.

The $160k that was disclosed as "monthly cash burn" and is heavily touted as being the low threshhold that SCRC needs to reach in order to be cash flow positive is severely misleading as Bob "BS" Schneiderman knows full well that this amount ONLY represents those payables for which the vendor refused to accept dilutive stock as payment, but instead demanded cash. SCRC incurred much more expenses for which it was able to convince vendors to accept deeply discounted dilutive stock (that is immediately free-trading BTW, so shareholders have NO advance warning when these hit the float) in lieu of cash -- BUT this should NOT be deducted from SCRC's cash burn the way Bob/Jeff are doing since "cash burn" is intended to represent a company's cash needs. The way Bob/Jeff is presenting cash burn is simply a variation of the cash flow statement where they simply pick out those cash flow items related to G&A expenses -- which is by no acceptable measure an appropriate method for computing cash burn.

I posted this explanation several times in the past but it is clear that the PIPE-holders have such a severe conflict of interest that they will stop at nothing to continue spreading false information and touting this $160k number.

As I had posted previously, with a monthly run rate of $4.09M now, ASSUMING that SCRC puts the brakes on its reckless spending, then this should be sufficient to become cash flow positive as well as earnings positive, but Bob "BS" Schneiderman has this nasty habit of incurring new "one-off" expenses each month, such as almost $500k worth of additional compensation expenses in Q2 related to when he decided to award himself and Jeff boatloads of stock options, and then again in July when he engaged 8 promo firms to P&D SCRC again. This is the type of reckless spending that will hurt shareholder value as this is a critical juncture in SCRC's history where every dollar is important to be able to show the market that SCRC is out of the red.

My understanding is profits are roughly 30%

Why do you insist on continuing to disseminate false information? Just yesterday you posted the same thing and I informed you that SCRC self-disclosed in its recent SEC filing that net of COGS and Selling Exp it "takes home" approx 18-20% of revenues. And then this take home amount is what SCRC uses to over its other company expenses.

If the current take home rate is closer to 30%, that is something that is not public yet as the Q2 10Q has yet to be issued. Just like the take home rate for PIMD is not yet known -- but yet you somehow posted last night that you "had an understanding" that it would be 30%.

That's a lot of inside info over the course of 24 hours...