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04/27/17 3:02 AM

#58200 RE: Spider Web #58197

Just like many great companies, RXMD has been growing fast and organically. They have tremendous revenue coming in not only from prescriptions, but from MTM, telepharmacy, Smart Medical Alliance, and upcoming acquisitions. The management team has affirmed shareholders in conference calls they have no any intention to dilute in any kind of way. Audited $18M rev in 2016 is almost a never-heard-of thing in the pinky world. $22M net revenue has been set for 2017, plus uplisting to a major exchange. All these proved one thing: RXMD is truly a gem that will be uplisted very soon!

Spider Web

04/28/17 11:00 AM

#58266 RE: Spider Web #58197

THOUGHTS - UPDATE - COMMENTS



ORGANIC CONTRACTION

I guess they could grow "Organically". I don't believe there is any other way for them to grow. But they don't seem to have any Profitable Benefits to this "Tremendous Revenue" that is spoken of. Which doesn't make it sound that "Tremendous" at all. This is just not a "Great" Company.

There is not any Revenue coming in from anywhere, except from Prescriptions. Scripts are about 99% of the Revenue and Business. The other things mentioned will amount to absolutely nothing. That's why they won't talk about those numbers. And there will be no Acquisitions. At least not without more Debt, Financing, and Dilution. Their definition of "Growth" will be equated to Kiosks. And that "Story-Line" will be dragged out as well.

When Management says something verbally, which does not match up with what is in "Writing" in an Audit, it is always best to go with what is in "Writing" in an Audit. And you have to pay special attention to how things are worded. Especially when anyone from Management speaks orally. Plus, you have to consider the "Forward-Looking Statements" clause, stated before any spoken CC.

It is always a "Prescription vs Reality" game, when Public Companies talk with their Shareholders. Like suggesting they are working on choosing a good IR Company. A totally unnecessary waste of time and money. It is common practice for Public Pink-Sheet Companies to Pander to their Shareholders. It is much easier to Sell Intentions than it is to Actually Achieve them.

This Company is in Contraction. Revenues are in Contraction. The $22M is a "Story-Line", designed to carry "Hope" through to the rest of the year. Just like that "Robotic Dispensing Machine" did last year. When it was perceived to be attained for February, but did not arrive until October. In which the "Story-Line" then slowly switched over to: "The Audit".

There will be no Up-Listing to a major national exchange for this Company this year, or the next. And there will be no Mergers or Acquisitions either. These are just more "Story-Lines" for them to drag out. And this Company is not the "Gem" that some speak of. "Gem" is just a word. It's like naming a Pet or something. And there WILL definitely be a Reverse-Split before there is any Up-Listing.

I think that most of these Posts here have been Debunked by Facts and Educated People, that have Proven that this Company's performance has Weakened Considerably, and is now in Contraction.



UPDATE ON DATA & ANALYSIS

PRESCRIPTION DATA
JAN 2016: 15.5K Rx / 24 W-Days = 646
FEB 2016: 16.7K Rx / 24 W-Days = 696
MAR 2016: 18.6K Rx / 27 W-Days = 689
APR 2016: 16.5K Rx / 26 W-Days = 635
MAY 2016: 17.5K Rx / 25 W-Days = 700
JUN 2016: 18.0K Rx / 26 W-Days = 692
Old AVE: 102.8K Rx / 152 W-Days = 676

THEN A SMALL GROWTH SPURT
Averaged 52 Extra Scripts Per W-Day

JUL 2016: 16.6K Rx / 25 W-Days = 664
AUG 2016: 20.0K Rx / 27 W-Days = 741
SEP 2016: 19.0K Rx / 25 W-Days = 760
OCT 2016: 18.6K Rx / 25 W-Days = 744
NOV 2016: 18.5K Rx / 24 W-Days = 771
DEC 2016: 18.0K Rx / 26 W-Days = 692
New AVE: 110.7K Rx / 152 W-Days = 728

GROWTH HAS NOW FLATTENED
Each New Period Will Pull The Averages
Up Or Down Into Growth Or Contraction


Need To Maintain Average Target = 728
JAN 2017: 17.5K Rx / 24 W-Days = 729
FEB 2017: 16.5K Rx / 23 W-Days = 717
Below AVE: 34.0K Rx / 47 W-Days = 723

TREND SHOWS CONTRACTION

=================================

BAROMETER SAYS CONRACTION
The Growth Spurt Last Year Yielded
A Target Avg Of 728 Scrips Per W-Day
This 728 Number Is The Barometer By
Which Any Change Will Be Measured

NEEDED FOR MARCH 2017
Scripts: 19,872 / 27 W-Days = 736
Rx Rev: 19,872 X $90.47 = $1.798M
Other Service Rev = $12,000
TOTAL REV = $1,809,820

March Actually Needed To Meet 736 To
Bring Jan+Feb 723 Avg Back Up To 728


ACTUAL MARCH 2017 RESULTS
Scripts: 18,500 / 27 W-Days = 685
Rx Rev: 18,500 X $86.49 = $1.60M
Other Service Rev = Included Advantage
TOTAL REV = $1,600,000

WHEN COMPARING 728 / 736 CONSTANT
Number Below At 685 = NEG GROWTH
All Results Were Below What Was Needed

=================================

NEEDED FOR FIRST QTR 2017 RESULTS
Scripts: 53,872 / 74 W-Days = 728
Rx Rev: 53,872 X $90.47 = $4.874M
Other Services Rev = $36,000
TOTAL REV = $4,909,800

THE ACTUAL FIRST QTR 2017 RESULTS
Scripts: 52,500 / 74 W-Days = 710
Rx Rev: 52,500 X $89.52 = $4.699M
Other Services Rev = Included Advantage
TOTAL REV = $4,699,999

WHEN COMPARING 728 CONSTANT
Number Below At 710 = NEG GROWTH
All Results Were Below What Was Needed



COMMENTS ON ANALYSIS & AUDIT

Results Were Below All Growth Avgs
And Now Confirming Solid Contraction

Script Quantities Were Way Below
Script Revenues Were Way Below

Final Results Below 728 Barometer

=================================

Fundamentals Have Topped-Out
Prescriptions Have Topped-Out
Revenues Have Topped-Out
And Service Has No Legs

=================================

March 2016 Revenue Was A
36% Increase Over Feb 2016

But March 2017 Was Only A
6.6% Increase Over Feb 2017

=================================

March 2016 Was $1.5M
And March 2017 Is $1.6M

YoY March Revenues Only
Increased 6.6% ... And Not 10%

They Rounded The Percentage Upward
To Falsely State A "10%" Increase Number
But Either 6.6% or 10% Still Shows Weakness

=================================

Q1 2016 Revenues = $3.9M
Q1 2017 Revenues = $4.7M

This 20% Increase Is Below Expectations
And Shows Contraction Has Already Begun

Quarter Revenues Should Have Been Above
$4.9M To Show Proof Of Sustained Growth

=================================

The Qtr Scripts Only Increased 3.3%
That's 50.8K To 52.5K ... Only 1.7K

Or Only 23 More Scripts Per W-Day.
Down from a 52 Growth-Spurt Ave

What Happened To The Growth ?

=================================

The Reason There Was A 20% Qtr
Increase In Revenue Was Because
The Cost & Price Of Scripts Increased
From About $77.60 to $89.06 ... Or 15%

Those Increases In Costs Were Then
Passed On To The Consumer, And Then
Showed Up As An Increase In Revenue

The Real Growth In Any Net Income
Will Most Likely Be Only Be 5% YoY
Just $4K More In Net Income When
Compared To Last Year's 1st Quarter

That Puts A Damper On Things

=================================

You Have To Be Careful When Getting
Excited About Revenues When The
Costs Are Just Going To Whack Them

Remember ... Scripts Only Increased 3.3%
That's A Relative "No Growth" Scenario

=================================

CEO Stated Q1 Was Better Than Expected

That Statement Is Proof That They Were
Anticipating More Contraction And Are
Still Expecting Even Greater Contraction

=================================

Did Not Break Down Service Revenue
Which Indicates How Insignificant It Is

=================================

The Audit Was For Financing Purposes Only.
Allowing For A Broader Range Of Less Toxic,
But Still Dilutive, Equity Financing. That's The
Only Reason They Did An Audit At All

They Will Always Keep Dangling The Audit
And Uplist Carrot, As Well As State Licenses
They Want To Think These Are Possibilities.
But Everything Is Always Possible... Right ?
However, In Reality... Not So Much

=================================

It Is To Always Keep "Something" In The Loop
The Most This Company Can Hope, Is To Get
More Money Through Dilutive Equity Financing
Hopefully Start A Satellite Location In Florida

Everything Is Being Shrunk Down To The Use
Of Virtual Pharmacy Kiosks, For Virtual On-Site
Access To Live Pharmacy Staff For Assistance
& Consultation. Outlined In MOU With MDFlow

The Other Stuff? Just Possible Illusions

=================================

The Growth-Trend Is In Contraction

=================================


Just My Opinion