Replies to post #19176 on ScripsAmerica Inc. (SCRCQ)

[coolerheadsprevail]

So was the PR from scrc this morning their attempt to say they are CFP but due to accounting methods they couldn't show that?

@newtoscrc,

The "potentially veiled attempt at saying they are CFP" and the reference to "accounting methods" are two distinct and separate issues in the PR.

RE: the first item, I'm not sure whether they were trying to hint at CFP or not, but it seemed like some sort of hint that they were trying to convey that their operating results are about to flip from red to black. Part of me wants to say that this is their clumsy way of trying to portray a favorable GREEN "EBITDA-like" number (i.e. basically exclude all the "Other" expenses), but that doesn't even make a lot of sense because EBITDA would still need to account for ALL G&A costs regardless of whether they were paid in cash or shares.

Assuming the revenues being reported out of Main Ave is legit and real (and we won't know that until the year-end 10K since that is the only filing that gets audited and Main Ave did not come online until Q1 of this year), and assuming SCRC keeps its expenses under control and maintains the expense run rates that it did during Q2, then it should very much not only be CFP but also earnings positive -- possibly even for the month of AUG.

I don't know why SCRC felt the need to say something so stupid like "Well, if you factor in some SG&A but exclude some other SG&A, then we're profitable!" I mean, heck, you either incurred the expense or you didn't. If you did, it's an expense and you have to reflect it in arriving at your bottom line somehow. Pretty simple accounting. To say that "Well, if we dont count the G&A expenses that we paid for via shares..." is a non-starter as far as I am concerned -- and I'm certain that most reasonably knowledgeable market participants quickly saw thru the smoke and mirrors as well.

SCRC is so close ot being profitable, why Bob feels the need to continually show off his ever-increasing depths of stupidity with such asinine PR's is beyond me. As I've stated many times previously (better, Trueheart?), these antics only serve to further diminish the Street's perception of SCRC.

RE: the second item, the comment re: accounting method is not new. It is a standard disclosure/comment Bob makes every quarter (go look up all his post-filing PR's and see for yourself) to explain why the revenues for the govt segment is so low and why there are no COGS for this segment. It is basically due to a requirement of the govt that revenues be recorded net of COGS. That's it. Non-event.