RXMD
Progressive Care Inc. Issues 2018 Annual Report Conference Call Highlights
MIAMI, March 29, 2019 (GLOBE NEWSWIRE) — Progressive Care Inc. (OTCQB: RXMD), a personalized healthcare services and technology company, today issued 2018 Annual Report Conference Call highlights.
The Company announced nearly $21 million in net revenues, a 4% increase over 2017. Prescriptions filled increased 35% to 304,000 during 2018. The company also filled over $6 million worth of prescriptions (Not Included in Net Revenues) for 340B entities during 2018, generating fees to the pharmacy of approximately $300,000, which is over a 150% increase over 2017. The Company reported a net loss of $1.6 million, which included nearly $600,000 of stock based compensation, $150,000 depreciation, $300,000 in growth expenses for conversion and integration of PharmCo Rx 1002, $120,000 of retroactive contractual adjustments, $100,000 increases in advertising and other related marketing expenses, and decreased gross margins on prescription services to 22%.
The Company has plans to lessen or eliminate some of these losses caused by industry wide reimbursement contraction and PBM fees through revenue growth across all PharmCo stores, introduction of revenues and earnings from the acquisition in progress, and diversify its revenue stream to cash based products and business-to-business health services. The Company does not anticipate any stock-based compensation to its management or employees in 2019.
The Company provided additional updates to the current initiatives:
Acquisition: The Company has filed its required advanced notification to Florida’s Medicaid Agency. The Acquisition is on track for a hard close in May/ Early June 2019 at which point FPRX, with its 2 cash flow positive Florida locations, will consolidate in the Company financial results which is projected to bring the Company to over $30 million in annual revenues for fiscal year 2019 and over $40 million in revenue for 2020.
SEC and Uplisting: The Company will be preparing the new acquisition for 2 years of audited financial statements for inclusion in an S-1 by the end of 2019. This process will bring the Company to full reporting status with the SEC and begin the next stage in uplisting to a national exchange like NASDAQ. Progressive Care also announced that it is planning a shareholder meeting to be scheduled in the near future.
CBD: PharmCo has secured 2 CBD brands from Pharmaceutical wholesale vendors. The Company intends to develop its own CBD formulas that complement its healthcare services model and produce positive health benefits for patients.
New Products and Services: Progressive Care is intending to focus on growth of cash based products and business-to-business services in 2019.
These products will include nutrient supplementation products for patients with chronic conditions, topical CBD products, and cash based compounded medications for the treatment of moderate to severe pain. The Company plans to increase advertisement and promotion of these consumer products to build brand awareness and product recognition.
The Company has developed an expertise in a number of healthcare areas including pain management, medication therapy management, and pharmacy industry analytics. These core competencies have been integrated into the Tele-PharmCo, DischargeRx, and 340B Program offerings to enhance the monetization of these services in 2019.
New Building: Progressive Care will be moving offices in April 2019. This will eliminate one of the current auxiliary lease payments. Once the corporate office move is complete, the Company will begin completing architectural design and pulling permits to begin construction on the ground floor pharmacy space. The $1.8 million, 11,000 sq. ft. facility, will ultimately house PharmCo’s Miami operations and accommodate long term growth and development.
“2018 had many challenges, but it was still one of our most successful on many levels,” said S. Parikh Mars, CEO of Progressive Care. “We completed our first acquisition, met all of our Humana performance measures, bought our first building, and had year-over-year prescription and revenue growth. We are building our brand, and becoming an acknowledged leader in the pharmacy space. 2019 is full of opportunity and we are working diligently to take advantage of every single one of them.”
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