ScripsAmerica Inc. (SCRCQ)

[coolerheadsprevail]

Not sure but I would think it has to do with the accounting methods that SCRC employed last year in their revenue recognition.

I was actually thinking the same thing. It is one thing for the K to be late because the auditors found something and, as a result, needed to perform alternative and supplemental audit procedures, but the continued lateness now indicates to me that a restatement of prior year Q's may be the potential cause.

If you recall, up until the Q3'14 10Q, SCRC had disclosed that their revenue recognition policy was to recognize revenues upon shipment. However, I had pointed out that in the Q3'14 10Q, SCRC became inconsistent in two ways. First, within that 10Q itself, it disclosed TWO DIFFERENT revenue recognition policies that conflicted with each other. Second, one of these policies conflicted with the policies disclosed in prior 10Q's. The discrepancy was that SCRC was now stating that it was BOTH recognizing revenues at the time of shipment, but then also stating that it did not recognize revenues until the shipment was confirmed to have been received by the customer.

I don't think they would spout out #s in PRs that were incorrect as that would mean disaster for the management group.

I agree. I do not believe that the approved orders are incorrect. If it is a revenue recognition issue, then it is simply a matter of timing as to determining what pot the numbers belong in until certain triggers/conditions are met that allow the numbers to move further along the accounting life cycle.

I think the auditors are just taking their time and could not care less how late it is.

The auditors absolutely do not care about how late a filing is, as that is not what they are paid to care about. But I don't think they are taking their own sweet time either. They are working diligently and advising SCRC as to what SCRC needs to do. IMO, SCRC has more to do with the delays than the auditors do...

All we can hope for is that Bob and Jeff are pressuring them to get it done.

Again, depends on what the underlying issue(s) is(are). If it is indeed a revenue recognition issue that requires prior period re-statements, then this is 100% a SCRC issue and it is Jeff Andrews, the CFO, and the Corp Controller who both need to be burning the midnight oil getting these financials re-stated ASAP...

With last week's April #s (which were great) and the 10K, we will see the PPS pop quickly.

The APR-2015 approved orders were indeed very nice, especially relative to the measly $1.45M from MAR-2015. As mentioned above, the revenue recognition issue will determine when and how much APR's numbers will actually show up as revenues, BUT the important thing is that -- so long as SCRC fulfills EACH AND EVERY RX, and does so in a TIMELY MANNER -- every dollar worth of approved orders WILL eventually make its way into revenues.

That is the big question at this time, IMO, because if you recall, based on the Q4'14 highlights disclosed in the NT filing combined with the Q1'15 revenue numbers that were PR'd, there appears to be an alarming increase in the backlog and deferred revenues -- and this is not a good thing to be seeing.

The 10K getting filed will be good, no doubt, but if it is not ready by 5/15, then an absent 10K combined with yet another NT filing saying that the Q1'15 10Q will be late will be a double black eye for SCRC. If this occurs, then it is likely that the 10Q is being held back until the 10K comes out, and that BOTH the 10K and 10Q will end up coming out at the same time.

Whether the sp "pops" simply because the 10K gets filed is unknown. Remember, the financial results of Q4'14 as well as Q1'15 have already been PR'd and NT'd; so the only unknowns are what may be in the disclosures and MD&A's. I'm not sure these would trigger any pops as anything material would have been PR'd already as it occurred.

Point being, although getting the 10K filed certainly removes a cloud from over SCRC, there is a difference between an event that keeps folks from staying away from a stock and an event that makes folks want to buy the stock.

The real issue is the stock being on the pink sheets now. No institutional investors will touch it. Get the 10K done, come off of the pink sheets and we will see some nice increases and volume.

It's not the fact that it's a pink. It's not the fact that it is Pink-Limited Info vs Pink-No Info. It is the fact that the sp is not over $5 and not trading on a senior exchange. Remember, the overwhelming majority of traditional TUTs are expressly forbidden by their own charters from buying securities that do not meet both of these criteria.

Until then, any volume and price movement will be primarily, if not completely, driven by retail.