ScripsAmerica Inc. (SCRCQ)

[coolerheadsprevail]

In reading the agreement for the LOC, Does SCRC have to fully repay one draw before it can initiate another?

The "agreement" has never been made public (nor should it). It assuredly contains the details. All that is public is the key highlights of the terms that were disclosed in the PR's that were issued at the time the LOC was announced.

And one of the things that was stated about it was that it was a REVOLVING line of credit. If it is like most other "revolving" LOC's, then this means that the borrower can keep drawing down UP TO ITS MAXIMUM LIMIT at any time, and -- due to its nature as "revolving" -- if SCRC were to pay down any of it, be it in part or in whole, then SCRC can go back and draw down more so long as the aggregate outstanding balance does not exceed the maximum.

The issue, though, as I've explained previously, is that this "Maximum" for SCRC is a constantly moving target, and changes based upon Main Ave's A/R balance (remember, the max is a function of 85% of Main Ave A/R). And one of the details that was not publicly disclosed is how frequently this "Maximum" is re-set. For example, is it re-set quarterly based upon each 10Q's A/R balance? Or is it re-set monthly based upon monthly internal financials that Triumph requires SCRC to submit to them for review? In addition, other details that we know nothing about are: Is the A/R balance gross or net of Allowances for Doubtful Accounts? Is the A/R balance gross or net of Deferred Revenues, which SCRC has described as being amounts that SCRC owes to the insurance companies? etc, etc, etc...

So long as SCRC remains in compliance with ALL of the terms, then there should be no problems for shareholders.