Progressive Care Inc (RXMD)

[Stcgg]

Note 4 Liquidity.. From 10-Q 03/31/16

During the three months ended March 31, 2016 the Company had net income of approximately $0.1 million and positive cash flow from operations of approximately $34,000. The Company believes that it has adequate capital to operate over the next 12 months. However, additional funding will be necessary to complete planned expansion initiatives. To address its financing requirements, the Company will seek funding through offering equity or convertible debt securities to individual and institutional investors. The outcome of these matters cannot be predicted at this time.

Historically, the Company has had operating losses, negative cash flows, and working capital deficiencies. Now that the Company has changed its focus and eliminated the majority of its debt, it is still uncertain whether the Company can sustain profitability and positive cash flows from operations. Also, the Company is uncertain as to whether it can obtain financing to execute growth objectives.