Saturday, January 03, 2015 7:17:23 PM
PXYN chart....
from drugdoctor
PXYN.053-Praxsyn-Pharmas'-RISE-to-NET-PROFITS-Incredible-Reverse-Merger-Story
About once every year, a tiny company will go public, and have an amazing growth in revenues and profits, and the stock price will go up 1000% or more, and people will say.... if only I had known then what I know now.
In my opinion, Praxsyn Pharmaceuticals is that company for 2014-2015. At only .053 per share the stock has not yet shown the appreciation that the turnaround in it's financials since going public have warranted, but it should began to rise now, and continue throughout 2015, and here's why...
First, a little background on Praxsyn Pharmaceuticals
PXYN is a REVERSE MERGER company that just went public this year. Pharmacy Development Company (PDC) and Mesa Pharmacy, used the old PAWS shell to accomplish this going public, and in order to comply with SEC rules and FINRA rules, it took over 8 months for the company to accomplish updated 10K annual reports and accomplish the name change and updated symbol change to Praxsyn Pharmaceuticals PXYN.
Also with the old shell came some convertible debt and the PDC company also had some debts and it appears that some of those debts were exchanged for shares, and many of those were diluted into the markets over the summer and drove the stock price down from the .20 area to the .03 area in early fall. However, that selling appears to be done and the stock now has recently traded as high as .08 but fell back on the "sell on the news" reaction that many microcap stock have, as momentum traders leave a stock after anticipated NEWS or Earnings is posted. So that leaves us now with a NET PROFITABLE company as reported in the third quarter, with the prospects for much larger revenues and NET PROFITS in the fourth quarter, and then huge growth, and I am not hyping, HUGE GROWTH in 2015 in both Revenues and NET PROFITS.
There is a huge wealth of information in the 2014 SEC 10Q - 3rd quarter earnings report about what Praxsyn is doing, and I encourage all investors and potential investors to take about 30 minutes to read this document in its entirety. Here is a link:
https://www.sec.gov/Archives/edgar/data/1346973/000149315214003857/form10q.htm
For the purposes of this discussion, I will first post a table of side by side quarterly results from the 10Q SEC filings for 2014, then I will discuss the results and will include some results from posters on the I-hub board that were prepared using the SEC filings. I have not had the time to independently verify all of their data, so if you find any errors or inconsistencies with their information, please post those here for correction in the comments below this blog. Here's the table:
To analyze this table you first need to know that for 2013 as a private company, the gross billings were: 3 months ending 9/30/2014 vs 9/30/2013- Net billing revenues $ 22,895,889 vs $ 403,315. That's not a misprint folks, the gross billings are up 5000% in one year. WHY?
During the three and nine months ended September 30, 2014 and 2013, revenues generated from sales of compounding pharmaceutical products primarily to worker’s compensation patients located throughout Southern California represented 100% of total revenues. At times the collection on these receivables can take in excess of one year, during which we may attend legal hearings, file liens to securitize claims, negotiate before worker’s compensation administrative judges, resolve liens with stipulations and orders for defendants to pay, and transmit demands to settle liens filed with the adjuster or defense attorneys.
During the nine months ended September 30, 2014 and 2013, we retained principal consultants to help us market with customers for our products. The terms of the consulting agreements entitled the consultants to receive amounts ranging from 13% to 17.5% of the gross prescription sales generated. We estimate that these two consultants’ marketing efforts generated almost 100% of the revenue for each period presented. Fees for these two consultants represented nearly all of our selling and marketing expense. In addition, on March 31, 2014, we added one of these consultants to our Board of Directors. Management believes the loss of these consultants to our Company would have a material adverse impact on our consolidated financial position, results of operations, and cash flows. For the nine months ended September 30, 2014 the consultants earned the following:
Nine Months Ended: September 30, 2014 - @29,134,507 Includes stock-based compensation of $11,391,301.
Read the full consulting agreement with Trestles Pain Specialists (TPS) and John Garbino here.
https://www.sec.gov/Archives/edgar/data/1346973/000149315214003857/ex10-1.htm
Selling and Marketing Expense
Our selling and marketing expense for the three months ended September 30, 2014 was $9,057,171, $2,612,051 of which was stock-based. For the comparable period in 2013, selling and marketing expense was $185,544, none of which was stock-based. The stock-based expense results mainly from the issuance of Series D Preferred shares to TPS under our January 23, 2014 agreement with them. See Note 1 to the accompanying consolidated financial statements. The remaining increase of $6,259,576 results from increased qualified prescription referral fees, mainly payable to TPS, on significantly higher net revenues.
So as you can see from the information above, the addition of TPS and John Garbino to the board of directors has caused explosion in revenues and gross profits for the company. In my opinion, the 13 to 17% gross billing revenues charged by TPS are excessive, and are slowing the profit growth of the company, but they are subject to re-negotiation in 2015 upon renewal of the contract, imo. Since TPS now owns preferred shares worth 160 million common shares, John Garbino has every reason to want to ensure the company grows fast and profitable and that share value is indeed increased!
Now I'm going to use some data from posts on the Investorshub board that have been presented. I have not verified this data, but the posters are reputable and I have linked to the posts..
Poster Lighthouse points out that the company continues to manage and clean up it's convertible debts by using a combination of new notes, shares, and CASH PAYOFFS to manage the debts. It appears they have embarked on a debt elimination plan as the company becomes profitable and is able to use cash no only to finance accounts receivable collections, but also to pay off old debts.
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=108402344
On September 19, 2014, we repaid principal and interest on notes in this category with face value totaling $95,000. In connection with this transaction, we recorded a gain on extinguishment of debt of $182. On September 30, 2014, we entered into a Settlement Agreement and Mutual Release with the related party note holder referred to above. Under the agreement, we settled notes in this category with face value totaling $152,500 along with a 2012 Convertible Promissory note (see below) with a face value of $150,000. Under the settlement agreement, we paid the note holder $302,500 in full settlement of the notes, including accrued interest, and recorded a gain on extinguishment of debt in the amount of $99,704 and eliminated $143,517 in derivative liability, which was recorded to additional paid-in capital upon extinguishment.
Forte Capital
This obligation was assumed March 31, 2014 in the amount of $289,398 as a result of the Merger discussed in Note 1. The obligation arose from a March 2014 agreement with Forte Capital Partners, LLC under which we agreed to repay amounts outstanding under a 14% convertible debenture with a total of 14,351,322 shares of our common stock, issuable in six monthly installments of 2,391,887 shares beginning in March 2014. 2,391,887 shares were issued prior to the merger discussed in Note 1 and 11,959,435 were issued post-merger. As of September 30, 2014, we have issued all shares required under the agreement with Forte Capital and no further amounts are owed.
AATV
As discussed in Note 5, on May 1, 2014, we finalized a settlement agreement with AATV. Under the finalized agreement, we agreed to pay AATV $1,100,000 for the following:
$600,000 for the full repayment of principal and accrued interest on a Profit Sharing Note, $100,000 of which was paid in March 2014 (see Note 5).
$500,000 for the repurchase of 7,504 Series D Preferred shares, representing the amount of AATV’s original investment (see Note 8).
As of September 30, 2014, we had paid all amounts owed under our obligation to AATV.
looks like there is a possibility of putting 60 million shares back into treasury... THEY HAD BETTER COME UP WITH THE $961,000 OR THEIR SHARES ARE GONE
Liabilities of discontinued operations totaling $961,831 represent the liabilities of our interest in our subsidiary Pet Airways, Inc. On March 26, 2014, we issued 60,000,000 common shares to a company controlled by two former officers of our Company in exchange for the former officers’ agreement to purchase our interest in Pet Airways and to forgive their unpaid wages. The former officers’ agreement to purchase our interest in Pet Airways was meant to relieve us of these debts. As of September 30, 2014, the former officers had not fulfilled their obligation to purchase our interest in Pet Airways, and other matters between the parties are in dispute.
We have endeavored to resolve our disputes with the former officers, including their fulfillment of their obligation to purchase the interest in Pet Airways, but to date have been unsuccessful. Subsequent to September 30, 2014 we agreed to participate in non-binding mediation for the matters in dispute. If we are unable to come to a satisfactory resolution through this process, we will likely pursue litigation.
Myhill
On August 28, 2012, we received a claim from Roger Saxton, Loren Myhill, Lucas Myhill, Beryl Myhill, and Ann Marie Kaumo (collectively the “Myhill Litigants”) seeking $358,433 for delayed public entry and illiquidity stemming from an investment made by the Myhill Litigants. On January 6, 2014, we entered into a Settlement and Mutual General Release Agreement with the Myhill Litigants under which they agreed to release all claims against us and relinquish all shares of PDC they owned in exchange for $200,000, $20,000 of which was payable on execution of the settlement agreement and the remainder payable at $10,000 per month over the following 18 months. In connection with this transaction, the $200,000 has been recorded as Treasury Stock.
The settlement agreement requires Counsel for the Plaintiffs to hold the PDC stock certificates during pendency of the payout period. During such period, Plaintiffs shall have no right to vote such shares, transfer such shares, or encumber such shares, and will not be entitled to receive cash dividends or stock dividends or any distributions based on ownership of such shares. The Plaintiffs shall return each of their stock certificates to the Company with a full executed stock power sufficient to transfer such shares. In the event of any transaction by the Company, including merger or buyout, that results in Plaintiffs’ shares of PDC to be converted to shares of another entity, such obligations and restrictions stated herein shall apply to such new or different shares.
Primary Care
In December 2009, we entered into an agreement with Primary Care Management Services (“Primary Care”) under which Primary Care would provide services consisting of billing to and collection from various insurance carriers for our products. Primary Care was to be compensated by a rate equaling two percent of the amounts billed on our behalf. In April 2012, we entered into a settlement agreement with Primary Care, who by that time had billed in excess of $10 million which it had been unable to collect. Under the settlement agreement, we agreed to pay Primary Care $92,000, $20,000 of which was payable immediately and the remainder payable at $2,000 per month over the following 36 months.
On May 15, 2014 we entered into a new settlement agreement with Primary Care under which we paid them $40,000 in full satisfaction of all remaining amounts owed them. In connection with this new settlement agreement, we recorded a gain on extinguishment of debt in the amount of $8,000 during the three and nine months ended September 30, 2014.
More highlights from Q3 from Lighthouse:
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=108363453
Here are just a few highlights from the Q for starters and you can see why the buyers are back today
Q2 vs Q3
Cash on hand $518k $593K
Acct receivable $8.5M $11M
Inventory $78K $105k
Acct Recievable Longterm $3M $4.5M
Acct Payable $607k $453k
Notes payable $5.3M $3.1M
Settlement Liab $700k $100k
Total shareholder
Equity $-3.5M $+70K
Expenses
Q2 vs Q3
Selling and Marketing
12.7M vs 9M
Operating income
8.5M vs 12M
Loss on extinguishment of debt (a good thing)
0 Vs (231K)
If you wonder how sales are doing so far in Q4, look what I found...
Pharmaceutical compounding material purchases
to the end of Q1 = $272,090
to the end of Q2 = $952,813 ( a $680,000 increase over Q1)
To the end of Q3 = $1,714,679 ( an additional $762,000 increase over Q2) NICE TREND
MORE VERY EXCITING THINGS I FOUND
1. The Q2 10Q shows nothing for unaccounted accounts receivable yet Q3 10Q has a whole section. It shows accounts receivable gross of $35.7M minus $20M in allowance for doubtful accounts and another $4.4M for the long term portion. That leaves just under $11 Million that could be coming to the bottom line for Q4...??
2. Gross billing sold to factoring for the Q were $40 Million yet the gross billings were $49.6 Million. That looks to me like they are in house collecting approx. $9.6 million so far.
THIS IS HUGE FOR Q4... TPS share issuance now complete and this cash can go on the bottom line if pxyn just does the same in sales they will have a bottom line of almost $12 Million profit due to not having the $11.3 Million in TPS shares...
Quote:
Our selling and marketing expense for the nine months ended September 30, 2014 was $29,134,507, $11,391,301 of which was stock-based. For the comparable period in 2013, selling and marketing expense was $945,000, none of which was stock-based. The stock-based expense results mainly from the issuance of Series D Preferred shares to TPS under our January 23, 2014 agreement with them( which is now complete)
More....
Lease is now 6000 sq ft
Leasehold improvements
Q2 = $24.7K when they did their lab expansion
Q3 = $39.4K...Looks like they may have expanded more??
Computer equipment went up by almost $5000 as well
Q2 = 26.8K
Q3 = 31.4K
(This likely due to in house billing)
Net profit also up Q3 to %531K when interest from notes are included
OhManIDied - has a lot of nice Due diligence links and interesting reading..
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=108368576
Additional Praxsyn-DD (10-q analysis)
-- Don't forget to checkout the ibox!
Ihubber, cdhames, visits the facility in California, on June 20th, 2014.
Here is his report:
https://docs.google.com/document/d/1fk2C0s75Lbn6iGbH1ybAXBYvOotT9npWYoh-QIrJoPE/edit
Summary of Year-to-date (10-31-14) progress:
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=107676593
Highlights from the 10-Q (released 11-19-14):
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=108363453
-- Quarter 2 vs Quarter 3 (oh, how things have changed)
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=108366143
-- Factoring "kickbacks", what!?!
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=108321047
-- A handful of nice developments..
Estimated earnings potential of the PXYN within the medium term:
-- Does not account for freshly discovered factoring "kickbacks"
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=108193142
CA WC-Study Supports Recent PXYN Moves
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=108237899
Workers Comp total Medical Expenses by State in 2012 (in $Millions):
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=107958833
PXYN
In conclusion, looking forward to 2015, the PLAN OF OPERATIONS from the CEO and the company from the 10Q says it best:
Management’s Plan of Operations
There are two significant influences to the losses we have reported in 2014. First, our revenue recognition, as discussed in Note 2, is based on our estimate of the net realizable value of each of our customer billings. We invoice our customers, which are insurance companies for workers compensation cases, in accordance with the fees permitted according to the State of California fee schedule. This is our gross billing. Given the nature of our industry and the reimbursement environment in which we operate, our estimate of the net realizable value of our billings is often less than the gross billing we are allowed to charge. We have recorded our revenue based on historical collection trends. Second, we have had to finance our operations by selling our accounts receivable (recorded at net realizable value) to a number of factors. The cost of factoring, which we record as interest expense, can be quite high – anywhere from 70% to 75% of the recorded accounts receivable.
These two influences have had a material impact on our operating results, but also offer a major opportunity for profit growth as we move forward. We have recently formed a subsidiary named NexGen Med Solutions, LLC, which will allow us to greatly expand our accounts receivables collection effort. We believe this will allow us to improve our collections, increase the net realizable value of our gross billing revenues, and reduce our dependency on factoring. In addition we continue to seek more conventional financing which will allow us to further move away from factoring and reduce our interest expense. Finally, we continue to seek new markets for our transdermal creams which will diversify our business, increase profitability and improve shareholder value. While there is no certainty that we will be able to achieve these goals, Management is hopeful we will be successful.
------------------------------------
There you have it folks - the company has completed it's Reverse Merger and reported NET PROFITS in just 3 quarters of operation as a public company. It has experienced tremendous growth, and has announced licenses to operation in 11 more states. They also have a Toxicology testing business also set to roll out. In house collections and internal financing of accounts receivable and continued growth of revenues promises a bright future for investors in PXYN as the chart link shows, the stock is still way off the 2014 highs and imo, should be trading in the .25 to .50 per share range at this time... Now you know....
from drugdoctor
PXYN.053-Praxsyn-Pharmas'-RISE-to-NET-PROFITS-Incredible-Reverse-Merger-Story
About once every year, a tiny company will go public, and have an amazing growth in revenues and profits, and the stock price will go up 1000% or more, and people will say.... if only I had known then what I know now.
In my opinion, Praxsyn Pharmaceuticals is that company for 2014-2015. At only .053 per share the stock has not yet shown the appreciation that the turnaround in it's financials since going public have warranted, but it should began to rise now, and continue throughout 2015, and here's why...
First, a little background on Praxsyn Pharmaceuticals
PXYN is a REVERSE MERGER company that just went public this year. Pharmacy Development Company (PDC) and Mesa Pharmacy, used the old PAWS shell to accomplish this going public, and in order to comply with SEC rules and FINRA rules, it took over 8 months for the company to accomplish updated 10K annual reports and accomplish the name change and updated symbol change to Praxsyn Pharmaceuticals PXYN.
Also with the old shell came some convertible debt and the PDC company also had some debts and it appears that some of those debts were exchanged for shares, and many of those were diluted into the markets over the summer and drove the stock price down from the .20 area to the .03 area in early fall. However, that selling appears to be done and the stock now has recently traded as high as .08 but fell back on the "sell on the news" reaction that many microcap stock have, as momentum traders leave a stock after anticipated NEWS or Earnings is posted. So that leaves us now with a NET PROFITABLE company as reported in the third quarter, with the prospects for much larger revenues and NET PROFITS in the fourth quarter, and then huge growth, and I am not hyping, HUGE GROWTH in 2015 in both Revenues and NET PROFITS.
There is a huge wealth of information in the 2014 SEC 10Q - 3rd quarter earnings report about what Praxsyn is doing, and I encourage all investors and potential investors to take about 30 minutes to read this document in its entirety. Here is a link:
https://www.sec.gov/Archives/edgar/data/1346973/000149315214003857/form10q.htm
For the purposes of this discussion, I will first post a table of side by side quarterly results from the 10Q SEC filings for 2014, then I will discuss the results and will include some results from posters on the I-hub board that were prepared using the SEC filings. I have not had the time to independently verify all of their data, so if you find any errors or inconsistencies with their information, please post those here for correction in the comments below this blog. Here's the table:
To analyze this table you first need to know that for 2013 as a private company, the gross billings were: 3 months ending 9/30/2014 vs 9/30/2013- Net billing revenues $ 22,895,889 vs $ 403,315. That's not a misprint folks, the gross billings are up 5000% in one year. WHY?
During the three and nine months ended September 30, 2014 and 2013, revenues generated from sales of compounding pharmaceutical products primarily to worker’s compensation patients located throughout Southern California represented 100% of total revenues. At times the collection on these receivables can take in excess of one year, during which we may attend legal hearings, file liens to securitize claims, negotiate before worker’s compensation administrative judges, resolve liens with stipulations and orders for defendants to pay, and transmit demands to settle liens filed with the adjuster or defense attorneys.
During the nine months ended September 30, 2014 and 2013, we retained principal consultants to help us market with customers for our products. The terms of the consulting agreements entitled the consultants to receive amounts ranging from 13% to 17.5% of the gross prescription sales generated. We estimate that these two consultants’ marketing efforts generated almost 100% of the revenue for each period presented. Fees for these two consultants represented nearly all of our selling and marketing expense. In addition, on March 31, 2014, we added one of these consultants to our Board of Directors. Management believes the loss of these consultants to our Company would have a material adverse impact on our consolidated financial position, results of operations, and cash flows. For the nine months ended September 30, 2014 the consultants earned the following:
Nine Months Ended: September 30, 2014 - @29,134,507 Includes stock-based compensation of $11,391,301.
Read the full consulting agreement with Trestles Pain Specialists (TPS) and John Garbino here.
https://www.sec.gov/Archives/edgar/data/1346973/000149315214003857/ex10-1.htm
Selling and Marketing Expense
Our selling and marketing expense for the three months ended September 30, 2014 was $9,057,171, $2,612,051 of which was stock-based. For the comparable period in 2013, selling and marketing expense was $185,544, none of which was stock-based. The stock-based expense results mainly from the issuance of Series D Preferred shares to TPS under our January 23, 2014 agreement with them. See Note 1 to the accompanying consolidated financial statements. The remaining increase of $6,259,576 results from increased qualified prescription referral fees, mainly payable to TPS, on significantly higher net revenues.
So as you can see from the information above, the addition of TPS and John Garbino to the board of directors has caused explosion in revenues and gross profits for the company. In my opinion, the 13 to 17% gross billing revenues charged by TPS are excessive, and are slowing the profit growth of the company, but they are subject to re-negotiation in 2015 upon renewal of the contract, imo. Since TPS now owns preferred shares worth 160 million common shares, John Garbino has every reason to want to ensure the company grows fast and profitable and that share value is indeed increased!
Now I'm going to use some data from posts on the Investorshub board that have been presented. I have not verified this data, but the posters are reputable and I have linked to the posts..
Poster Lighthouse points out that the company continues to manage and clean up it's convertible debts by using a combination of new notes, shares, and CASH PAYOFFS to manage the debts. It appears they have embarked on a debt elimination plan as the company becomes profitable and is able to use cash no only to finance accounts receivable collections, but also to pay off old debts.
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=108402344
On September 19, 2014, we repaid principal and interest on notes in this category with face value totaling $95,000. In connection with this transaction, we recorded a gain on extinguishment of debt of $182. On September 30, 2014, we entered into a Settlement Agreement and Mutual Release with the related party note holder referred to above. Under the agreement, we settled notes in this category with face value totaling $152,500 along with a 2012 Convertible Promissory note (see below) with a face value of $150,000. Under the settlement agreement, we paid the note holder $302,500 in full settlement of the notes, including accrued interest, and recorded a gain on extinguishment of debt in the amount of $99,704 and eliminated $143,517 in derivative liability, which was recorded to additional paid-in capital upon extinguishment.
Forte Capital
This obligation was assumed March 31, 2014 in the amount of $289,398 as a result of the Merger discussed in Note 1. The obligation arose from a March 2014 agreement with Forte Capital Partners, LLC under which we agreed to repay amounts outstanding under a 14% convertible debenture with a total of 14,351,322 shares of our common stock, issuable in six monthly installments of 2,391,887 shares beginning in March 2014. 2,391,887 shares were issued prior to the merger discussed in Note 1 and 11,959,435 were issued post-merger. As of September 30, 2014, we have issued all shares required under the agreement with Forte Capital and no further amounts are owed.
AATV
As discussed in Note 5, on May 1, 2014, we finalized a settlement agreement with AATV. Under the finalized agreement, we agreed to pay AATV $1,100,000 for the following:
$600,000 for the full repayment of principal and accrued interest on a Profit Sharing Note, $100,000 of which was paid in March 2014 (see Note 5).
$500,000 for the repurchase of 7,504 Series D Preferred shares, representing the amount of AATV’s original investment (see Note 8).
As of September 30, 2014, we had paid all amounts owed under our obligation to AATV.
looks like there is a possibility of putting 60 million shares back into treasury... THEY HAD BETTER COME UP WITH THE $961,000 OR THEIR SHARES ARE GONE
Liabilities of discontinued operations totaling $961,831 represent the liabilities of our interest in our subsidiary Pet Airways, Inc. On March 26, 2014, we issued 60,000,000 common shares to a company controlled by two former officers of our Company in exchange for the former officers’ agreement to purchase our interest in Pet Airways and to forgive their unpaid wages. The former officers’ agreement to purchase our interest in Pet Airways was meant to relieve us of these debts. As of September 30, 2014, the former officers had not fulfilled their obligation to purchase our interest in Pet Airways, and other matters between the parties are in dispute.
We have endeavored to resolve our disputes with the former officers, including their fulfillment of their obligation to purchase the interest in Pet Airways, but to date have been unsuccessful. Subsequent to September 30, 2014 we agreed to participate in non-binding mediation for the matters in dispute. If we are unable to come to a satisfactory resolution through this process, we will likely pursue litigation.
Myhill
On August 28, 2012, we received a claim from Roger Saxton, Loren Myhill, Lucas Myhill, Beryl Myhill, and Ann Marie Kaumo (collectively the “Myhill Litigants”) seeking $358,433 for delayed public entry and illiquidity stemming from an investment made by the Myhill Litigants. On January 6, 2014, we entered into a Settlement and Mutual General Release Agreement with the Myhill Litigants under which they agreed to release all claims against us and relinquish all shares of PDC they owned in exchange for $200,000, $20,000 of which was payable on execution of the settlement agreement and the remainder payable at $10,000 per month over the following 18 months. In connection with this transaction, the $200,000 has been recorded as Treasury Stock.
The settlement agreement requires Counsel for the Plaintiffs to hold the PDC stock certificates during pendency of the payout period. During such period, Plaintiffs shall have no right to vote such shares, transfer such shares, or encumber such shares, and will not be entitled to receive cash dividends or stock dividends or any distributions based on ownership of such shares. The Plaintiffs shall return each of their stock certificates to the Company with a full executed stock power sufficient to transfer such shares. In the event of any transaction by the Company, including merger or buyout, that results in Plaintiffs’ shares of PDC to be converted to shares of another entity, such obligations and restrictions stated herein shall apply to such new or different shares.
Primary Care
In December 2009, we entered into an agreement with Primary Care Management Services (“Primary Care”) under which Primary Care would provide services consisting of billing to and collection from various insurance carriers for our products. Primary Care was to be compensated by a rate equaling two percent of the amounts billed on our behalf. In April 2012, we entered into a settlement agreement with Primary Care, who by that time had billed in excess of $10 million which it had been unable to collect. Under the settlement agreement, we agreed to pay Primary Care $92,000, $20,000 of which was payable immediately and the remainder payable at $2,000 per month over the following 36 months.
On May 15, 2014 we entered into a new settlement agreement with Primary Care under which we paid them $40,000 in full satisfaction of all remaining amounts owed them. In connection with this new settlement agreement, we recorded a gain on extinguishment of debt in the amount of $8,000 during the three and nine months ended September 30, 2014.
More highlights from Q3 from Lighthouse:
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=108363453
Here are just a few highlights from the Q for starters and you can see why the buyers are back today
Q2 vs Q3
Cash on hand $518k $593K
Acct receivable $8.5M $11M
Inventory $78K $105k
Acct Recievable Longterm $3M $4.5M
Acct Payable $607k $453k
Notes payable $5.3M $3.1M
Settlement Liab $700k $100k
Total shareholder
Equity $-3.5M $+70K
Expenses
Q2 vs Q3
Selling and Marketing
12.7M vs 9M
Operating income
8.5M vs 12M
Loss on extinguishment of debt (a good thing)
0 Vs (231K)
If you wonder how sales are doing so far in Q4, look what I found...
Pharmaceutical compounding material purchases
to the end of Q1 = $272,090
to the end of Q2 = $952,813 ( a $680,000 increase over Q1)
To the end of Q3 = $1,714,679 ( an additional $762,000 increase over Q2) NICE TREND
MORE VERY EXCITING THINGS I FOUND
1. The Q2 10Q shows nothing for unaccounted accounts receivable yet Q3 10Q has a whole section. It shows accounts receivable gross of $35.7M minus $20M in allowance for doubtful accounts and another $4.4M for the long term portion. That leaves just under $11 Million that could be coming to the bottom line for Q4...??
2. Gross billing sold to factoring for the Q were $40 Million yet the gross billings were $49.6 Million. That looks to me like they are in house collecting approx. $9.6 million so far.
THIS IS HUGE FOR Q4... TPS share issuance now complete and this cash can go on the bottom line if pxyn just does the same in sales they will have a bottom line of almost $12 Million profit due to not having the $11.3 Million in TPS shares...
Quote:
Our selling and marketing expense for the nine months ended September 30, 2014 was $29,134,507, $11,391,301 of which was stock-based. For the comparable period in 2013, selling and marketing expense was $945,000, none of which was stock-based. The stock-based expense results mainly from the issuance of Series D Preferred shares to TPS under our January 23, 2014 agreement with them( which is now complete)
More....
Lease is now 6000 sq ft
Leasehold improvements
Q2 = $24.7K when they did their lab expansion
Q3 = $39.4K...Looks like they may have expanded more??
Computer equipment went up by almost $5000 as well
Q2 = 26.8K
Q3 = 31.4K
(This likely due to in house billing)
Net profit also up Q3 to %531K when interest from notes are included
OhManIDied - has a lot of nice Due diligence links and interesting reading..
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=108368576
Additional Praxsyn-DD (10-q analysis)
-- Don't forget to checkout the ibox!
Ihubber, cdhames, visits the facility in California, on June 20th, 2014.
Here is his report:
https://docs.google.com/document/d/1fk2C0s75Lbn6iGbH1ybAXBYvOotT9npWYoh-QIrJoPE/edit
Summary of Year-to-date (10-31-14) progress:
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=107676593
Highlights from the 10-Q (released 11-19-14):
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=108363453
-- Quarter 2 vs Quarter 3 (oh, how things have changed)
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=108366143
-- Factoring "kickbacks", what!?!
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=108321047
-- A handful of nice developments..
Estimated earnings potential of the PXYN within the medium term:
-- Does not account for freshly discovered factoring "kickbacks"
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=108193142
CA WC-Study Supports Recent PXYN Moves
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=108237899
Workers Comp total Medical Expenses by State in 2012 (in $Millions):
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=107958833
PXYN
In conclusion, looking forward to 2015, the PLAN OF OPERATIONS from the CEO and the company from the 10Q says it best:
Management’s Plan of Operations
There are two significant influences to the losses we have reported in 2014. First, our revenue recognition, as discussed in Note 2, is based on our estimate of the net realizable value of each of our customer billings. We invoice our customers, which are insurance companies for workers compensation cases, in accordance with the fees permitted according to the State of California fee schedule. This is our gross billing. Given the nature of our industry and the reimbursement environment in which we operate, our estimate of the net realizable value of our billings is often less than the gross billing we are allowed to charge. We have recorded our revenue based on historical collection trends. Second, we have had to finance our operations by selling our accounts receivable (recorded at net realizable value) to a number of factors. The cost of factoring, which we record as interest expense, can be quite high – anywhere from 70% to 75% of the recorded accounts receivable.
These two influences have had a material impact on our operating results, but also offer a major opportunity for profit growth as we move forward. We have recently formed a subsidiary named NexGen Med Solutions, LLC, which will allow us to greatly expand our accounts receivables collection effort. We believe this will allow us to improve our collections, increase the net realizable value of our gross billing revenues, and reduce our dependency on factoring. In addition we continue to seek more conventional financing which will allow us to further move away from factoring and reduce our interest expense. Finally, we continue to seek new markets for our transdermal creams which will diversify our business, increase profitability and improve shareholder value. While there is no certainty that we will be able to achieve these goals, Management is hopeful we will be successful.
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There you have it folks - the company has completed it's Reverse Merger and reported NET PROFITS in just 3 quarters of operation as a public company. It has experienced tremendous growth, and has announced licenses to operation in 11 more states. They also have a Toxicology testing business also set to roll out. In house collections and internal financing of accounts receivable and continued growth of revenues promises a bright future for investors in PXYN as the chart link shows, the stock is still way off the 2014 highs and imo, should be trading in the .25 to .50 per share range at this time... Now you know....
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