Progressive Care Inc (RXMD)

[MrMike241]

The NXPL investment resulted in insufficient outstanding shares. RXMD was essentially overdrawn. I'm not sure why 1:200 was needed, other than to support the current share price range, which is adequate for uplist.

From the 2022 10-K, page F-23:

...The Company incurred a day one loss of approximately $1.0 million because the Company had insufficient authorized common stock shares to settle the warrants...

...The Company determined that the warrants do not meet the definition of a liability under FASB ASC Topic 480. However, they do meet the definition of a derivative under FASB ASC Topic 815 because at the time the warrants were issued, the Company had insufficient common stock shares to settle the warrants when considering all other commitments that may require the issuance of common stock shares. The Company determined that the fair value of the warrants on their issuance date of August 30, 2022 was approximately $6.1 million and elected to classify the preferred stock shares and warrants as liabilities. On December 29, 2022, the Company effected a 1-for-200 reverse stock split of our common stock. As result of the reverse stock split, the warrants were reclassified from liabilities to equity...

$RXMD