PMX Communities Inc. (fka PMXO)

[RRSilverShadow]

Apr 19, 2013 (ACCESSWIRE-TNW via COMTEX) -- PMX Communities Inc. (otcqb:PMXO), a precious metal incubation company focused on deploying precious metal dispensing terminals throughout the U.S. and internationally, recently released its 10-K filing with the SEC. After bringing in a new management team, the SEC filing details significant progress in cleaning up the financial statements and ramping up for 2013. In this article, we'll take a closer look at some of the critical details within the regulatory filing.

Click Here: Read the Entire 10-K SEC Filing : http://secfilings.com/searchresultswide.aspx?TabIndex=2&FilingID=9223540&companyid=811217&ppu=%2fdefault.aspx%3fticker%3dPMXO%26amp%3bauth%3d1

New Management Cleans Up the Books

PMX Communities had a transformational year in 2012, cleaning up its books and setting the stage for growth in 2013. While the company recorded 700 gold transactions yielding $266,256 in revenue between December 17, 2010 and March 23, 2011, the company never detailed the profitability of the tested gold machine, and at that time, it was run by a former management team that was unable to meet the promises they had made to early investors or build their own gold terminal. The culminating result of this was the hiring of a new managing director of PMX Gold Bullion Sales, Inc. in May of 2012 to take the helm.

Despite the lackluster performance of the former management in executing its plans, even the initial gold machine proved a core business model that has since been greatly refined, as was noted in this excerpt from the company's recent 10-K filing:

"Although our tests were limited to one physical location, management is satisfied with the results of the test marketing program given the fact that the machine was operational in a cash only mode, together with a number of other significant technology and operational challenges that were faced."

Looking further at the filing, the company has made real strides actualizing what they promised to shareholders. PMX Communities, Inc. made adjustments correcting a $62,651 overstatement of derivative liabilities and wrote off the company's legacy gold machine for $54,342. With the goal of going forward with a clean slate, PMX Communities is now set to report numbers in 2013 that will accurately reflect the true sustainability and growth potential of the company.

Aside from these changes, the new team has dramatically reduced SG&A expenses by 83%, from $1,614,406 to $278,233, while making significant operations progress outlined below. These changes were made without any executive salaries and employing a lean approach that involved hiring only consultants that are scalable with PMX Communities' long-term growth plan.

This lean business model shows tremendous potential in capitalizing on a unique market opportunity. The main shareholder took control of 33M common shares of stock on August 8th, 2011 - nearly half of the company - suggesting that shareholder dilution is likely to be minimal in the future. And, the aforementioned strategy of using consultants on an as-needed basis should keep SG&A expenses to a minimum and ultimately keep the company on track.

Many Signs of Operations Ramping Up

Since joining the company, the new management team has made significant operational progress. After obtaining ownership rights to the ATM patent applications for the first phase of its gold dispensing terminal production, they entered into an agreement with Sunshine Minting Inc. to produce its gold products, launched a redesigned website, and setup its first gold dispensing terminal in Boca Raton, Florida at the Town Center Mall on January 4, 2013.

In the 10-K's Statement of Cash Flows, the company indicated that it spent $161,563 purchasing the gold products to stock its dispensing terminals and $114,370 purchasing the gold dispensing terminals themselves. These actions paint the picture of a company that's ramping up its operations moving into FY 2013, with gold dispensing terminals in its possession and gold products to stock all their locations.

Operational expenses have been minimal, with a near $1,400 per month office lease, a $3,500 per month lease for the first gold dispensing terminal in the Town Center Mall in Boca Raton, and minimal accounts payable after the assumption of expenses from prior management. And at the same time, the company's total assets increased four-fold and shareholders' deficit dramatically improved from -$180,000 to -$88,000.

Finally, the company also hinted at larger potential plans in the 10-K:

"The registrant intends to sell gold bullion bars and coins through its dispensing terminals in the United States first. Later plans are to sell globally, doing business primarily through credit and debit card transactions. The registrant also plans to build an online gold bullion store...

"The registrant is actively seeking gold properties and claims for development, including mineral lease purchase option transactions and reviewing several precious metal mining properties for development. We will consider a wide range of worldwide project opportunities, and we do not have fixed criteria for the consideration of such projects."

Unique Opportunity for Investors

PMX Communities represents a unique opportunity for investors, as new management transforms dream to reality after taking the reigns from prior management. With a modest market capitalization of just around $3 million, the stock represents an attractive play for a portfolio seeking a consumer demand for precious metals, particularly after the marked progress seen in its most recent 10-K filing with the SEC analyzed in the paragraphs above.

Shareholder Relations: [phone], Interactive Business Alliance, Maxwell Farrell, [e-mail]

For more information on PMX Communities, please visit:

Company Website www.pmxgold.com

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