Replies to post #11468 on Praxsyn Corp (PXYN)

[Drugdoctor]

But...... how much revenue would they have without Trestles? There's the rub... and with 90% gross margins, there is plenty of profits... The problem is they are only making 20% profits because of factoring, then paying 17.5% of that to Trestles... But... if they were making 30% or 40% then they could be paying 17.5% and keeping 12.5 or 22.5% as PROFITS... 12.5% of 100 million dollars would be 12.5 million dollars.... and of course, it would be 22.5 million dollars with 40% profits.... In house collections is the answer... and PAWS management is aware and working on solutions...

[Rhenarium]

That's the essential concern I have. Does PAWS have any real value in and of itself, or are they just like a remora fish hanging around the TPS shark - managing to eke out a meager subsistence existence from whatever scraps the shark leaves behind?

It is incredibly concerning to me that the financial agreements between TPS and PAWS are tilted so wildly in favor of TPS. PAWS cheerleaders cheerfully note that "without TPS our sales would be zero", without considering the implications of that statement.

I still don't know the answers to the questions I raised a while ago in a post I'm pasting below - although I'm starting to think more and more that TPS holds ALL the power in the PAWS / TPS relationship, and that TPS will always get the vast majority of any profits resulting from PAWS gross sales.

Rhenarium Saturday, 07/19/14 08:44:01 PM
Re: naturalborninvestor post# 9879
Post # of 11483

Why do you assume the preferred shares will not be converted to common?

They've already given 1/3 of the shares to TPS, and added John Garbino (TPS' CEO) to the PAWS Board of Directors. TPS is the company to which they are also giving 17.5% of GROSS billings. I'm pretty sure that TPS is "in it for the money, money, money" and will be converting / selling those share as the share price increases.

In fact, TPS is a big area of concern for me. My interest in PAWS is quite recent and my knowledge of the company is quite incomplete. I get the sense that virtually all of PAWS sales come via TPS somehow. If that's true, what is the nature of the relationship? Are they equally dependent upon each other? Or does TPS somehow have the inside track on supplying pain medicine, and they've chosen to get it from PAWS simply because they can use PAWS financial weakness to extract the biggest possible piece of the pie (e.g., 17.5% of gross revenue, 167M shares, a seat on the BOD, etc.)?

If the latter, does TPS have PAWS by the proverbial nutsack? I could live with that, as long as TPS chooses not to squeeze any harder. But does TPS have similar "ins" in the other states in which PAWS is pursuing licenses? Or are they other entities like TPS in other states that they PAWS would need to get into bed with? Or is PAWS capable of getting substantial sales in other states without outside help?

I don't know the answers to any of these questions...