ScripsAmerica Inc. (SCRCQ)

[coolerheadsprevail]

They wouldn't do it if they weren't going to make money off of it

No doubt. There are thousands of pharmacies in the state of NJ (as well as every other state), and if PIMD has the ability to source the raw materials cheaper than any other supplier in NJ (or at least cheaper than most other suppliers), then PIMD should have more business than it can handle WITHOUT needing to engage in inter-company transactions w/Main Ave.

As I’ve stated before, helping Main Ave lower its costs is fine – but NOT if it is at the expense of giving up another customer. If PIMD can absorb servicing Main Ave’s business needs w/o sacrificing sales to other pharmacies, then great. This would be the ideal situation. But don't be fooled into thinking that the cost savings to Main Ave will be earth-shattering. After all, even at a 10% COGS rate and using a $60M annual revenue run rate, Main Ave currently spends approx $6M per annum on COGS. Let's say PIMD can save them 25%. That's only $1.5M over the course of 12 months, or only $125k/month compared to a $5M revenue number per month. Sure, every dollar is important and $1.5M is $1.5M (certainly nothing to sneeze at, and if it is money on the table waiting to be had, then of couse, let's take it), but it is immaterial and nothing to justify a hype-fueled pump distortion campaign about how PIMD selling to Main Ave will result in a revenue goldmine for SCRC -- it is just so sadly reminiscent of how JOSEPH ZAMPETTI and the CORE pumped up the impact of WRx when BS Schneiderman kept PR'ing WRx's revenues and NOT SCRC's piece of it, and we later find out thru the SEC filings that WRx only ended up contributing approx $15k/month to SCRC. That's it.

After all, when it comes down to the bottom line for SCRC – not just PIMD, and not just Main Ave, but for SCRC as a combined entity – you need to ask yourself which is better if you could not have both but had to choose only one: (A) Selling to Main Ave to help them save an additional 10-20% off of their COGS, which itself is already a low 10% of their Revenues, but NOT being able to recognize the revenues from this sale, or (B) Selling to an unaffiliated pharmacy and being able to report 100% of the sale and associated gross margin and profit.

I am cautiously optimistic about PIMD. Given BS Schneiderman’s track record, I am concerned that PIMD may end up not that much better than WRx (with the only difference being that at least we get to report 100% of PIMD revenues compared to only 14% of WRx’s gross profits. Remember, WRx has licenses to distribute product as well, but for some reason customers aren’t there and SCRC only makes like $15k/mo from WRx. Drugs are commodities, and it will ultimately come down to price, so hopefully PIMD can manage its operations efficiently enough where it can be very cost competitive to attract customers while still being able to enjoy reasonable margins to enhance – and NOT drag down – SCRC’s overall bottom line. Certainly PIMD has not gotten off to a good start, as the Q3 10Q disclosed that although they began operations in Q3, they were already operating at a loss – which is a red flag to me considering that they are supposedly operating in a segment with rather beefy margins.

But this discussion is starting to get off-track. The original premise was NOT whether PIMD can make money – it was the ridiculous pumps by JOSEPH ZAMPETTI and his CORE con artists trying to get retail sheeple to believe that, specifically, PIMD’s sales to Main Ave, would be a goldmine for SCRC as it would allow SCRC to “double-dip” and “ring the bell twice” as it sold the same inventory twice (once when PIMD sells the raw materials to Main Ave and then again when Main Ave sells to the end consumer). The CORE now knows that they pumped out a doozey and that they just stepped in it -- and now they are doing a combo-dance of backtracking and weasel-talking to spin it as if they always meant to say that PIMD could help Main Ave lower its costs.