Replies to post #10778 on Praxsyn Corp (PXYN)

[Richpou]

no we do not all agree that at all.
Most of that loss was 1 time charges reported in the Q, and they still made money. A paper loss on factoring is just that.. a paper loss. If I sell something for 10 dollars.. and need the money.. I sell my billable's to you for 3 dollars, cost of producing goods is 1 dollar.. I still made 2 dollars. The "loss" of 7 dollars that they are reporting is a paper loss only.

What needs to start happening which they addressed is that they are going to be moving more billings in house, which will lessen the factoring that they need to do, using as above. sell 10 dollars, receive 6 dollars now with the help of in house billings, factoring less and less over time... paper loss of 4 dollars. cost is still 1 dollar to produce.. = more money.

[dshade]

no. margins will be nice, no loss. $7.5 mil added to margins as well

[countrmike]

Basicly, you are correct. The current financial structure does not allow for a net profit. This is why auditors have stated that paws is NOT a going concern.

Best to believe auditors.

[naturalborninvestor]

is it really that hard to understand?

Your assumption "Now, as is, the more we sell the more we loose" is simply wrong.

It should be re-worded to "the more we sell the more we give up in gains".

That is correct, but it also means that the operating profit increases concurrently.

[OhManIDied]

I agree with all of your points.

The company is making TPS earn the Series D which will continue to show up as a liability on the balance sheet for the next two quarterly filings.

I suspect that by Q4, TPS will have earned the remaining earmarked preferred shares. With knowledge that 54K+ of the final 106K was earned by July 21st.

This has been a double negative on the balance sheet, since TPS also earns 17.5% of qualified gross billings however, these shares are going to provide a stable long-term incentive for TPS to keep performing like they have. It's also good to note that Garbino is on the BOD so these Series D shares will be tied up pretty tightly.

Overall, it is good to see that the company will continue increasing the gross revenues. When financing and factoring are taken care of, the balance sheet will go from only netting 2.5% of the gross billings (20% factoring) to 20%+ which will be extremely promising for shareholders - especially if the gross revenues are in excess of $200M-$300M where 20% would be $40M-$60M in gross income (AFTER paying the "selling and marketing" teams their sizable share), of which only ~3.6% will be the cost of goods sold.

I especially like this part of the 10-Q, and expect it to be the move that will transform this company's potential energy into kinetic, super-solid, high-growth investment-grade material (hopefully sooner than later):

In addition, on the same date, the majority of the board of directors resolved to appoint Kelly Reynolds as a member of the board of directors to serve until her resignation, or until her successor is elected and qualified. For the last two completed fiscal years, Ms. Reynolds does not have any transactions with the Company in which the amount exceeds the lesser of $120,000 or one percent of the average of the Company’s total assets. Ms. Reynolds is the sister in law to Mr. Kurtz, but other than that relationship, she has no other family relationships with any other officer or director of the Company.

Kelly Reynolds, 46, is the Chief Administrative Officer of Mesa Pharmacy, Inc. (“Mesa”), our wholly owned subsidiary, and has worked in the pharmacy business for over 5 years. Her expertise is in medical billing, data management and day-to-day operations of all administrative functions of Mesa, in particular she has been developing internal systems for the billing and receiving of medical prescriptions, and the day to day management of patient records, accounts receivable and prescription verification. Over the past 3 years, Ms. Reynolds has developed a systemized billing system in which the patients billing information is compiled and verified for accuracy, and then billed electronically to the insurance carrier.

PAWS