Progressive Care Inc (RXMD)

[OhManIDied]

No problem mate. Asking questions is a good way to learn.

This being a pharmacy - not sure if they compound any of the drugs themselves (they likely do) - it may take a bit for them to consolidate all of their revenues together, given the fact that they often operate and collect revenues with account receivables (ARs). Additionally, they now have a partner pharmacy to tally the books of. Could take a while (say a few weeks) but we will likely get a preliminary estimate with confidence that it is close to what they will eventually file.

In this industry:
1/3rd of ARs collect in first 30 days
2/3rd in 60-90 days
last third within a year and they will generally sell the longer-term, high-risk ones to a factor for a discount (to keep their cash flows in order)

Given that this company is unlikely to do much factoring, I doubt we will see them struggle with cash flows as much as other pharmaceutical companies do.

RXMD