Praxsyn Corp (PXYN)

[Andy3077]

At June 30, 2015, we had negative working capital of $6,478,085. Historically, we have funded operations primarily through proceeds received (a) in connection with factoring of accounts receivable on a nonrecourse basis for non-pre-approved billings, (b) through issuances of notes payable, and (c) through sales of common stock. Prior to 2015, our business has been concentrated in workers’ compensation billings which were not pre-approved and for which the collection would be delayed for long periods of time depending on various factors. In 2015, we have added a significant amount of business for which billings were pre-approved by the insurance carriers. We have been, and continue to be, dependent upon a few third party marketing services and we derive almost 100% of our revenues from customers referred by these marketing services.