Again 1000% revenue increase would be $100 million.LOL The only thing that they have going for them is a 75% stake in ARIA, and that is all they have to show for a $47 million accumulated deficit. How much ARIA can turn with the 40 beds is almost known from the FAQ page that the company released. They talk about 1.8 million in gross billings for half the year. So less than a million a quarter...GROSS BILLINGS!! No doubt the revenue increase will be the headline and the PR chasers will run the price up a bit but the reality is this company already posts $2 million in losses every quarter. They are servicing $19 million in current liabilities. Those are the numbers along with those who accumulated at this level chomping at the bit to flip this thing and the mass of conversions waiting for the action that will bring the share price right back down.
Total liabilities $19,105,744 June 31, 2021 18,448,565 Dec 30, 2020 Total assets $4,193,033 Revenues were $96,158 three months ended June 30, 2021 Net loss was $(2,626,438) for the three months ended June 30, 2021
Read the answers about the $1.8 million and I don't really see where he justified the number. Are we talking about a perfect scenario with full occupancy and full reimbursement for the billings? Pick through what they call "Gross Revenue" or "Gross Billings". Some excerpts from the FAQ page. I don't believe traders will be very happy with Q3 if expectations are raised to an unachievable level.
"...As a public company we must use an accrual accounting system which starts with stating the Gross Revenue or Billing number and applying an estimated factor of expected collection of those Gross Revenues which would reduce the Gross Revenue to the Revenue number..."
In July the Company reported that it expects to produce $1.8 million in Revenue in the Second half of 2021. What does this mean?
The Revenue number is the net amount expected to be collected from the provision of services. ARIA has 10 beds for the detox level of care, 12 for the residential level of care and 20 beds available to partial hospitalization care. The beds are also further split into male and female beds. Even though we have 40 beds it is almost impossible to match each client with an available bed at the proper level of care and the gender of that bed availability. For example, when we agree to move a client form Residential care to Partial hospitalization care and plan that for Friday, we need to keep an open bed for a few days just to accommodate the move. For all these reasons, it is considered a “full house” when we reach 35 or 36 occupants in total for any given night.
In November and December the Company reported that the ARIA treatment center had Gross billing numbers of $602,000.00. What did that mean?
"The various Gross Billing amount for a single day of treatment in Detox is $4,500.00, Residential $3,950.00, PHP $3,200.00, IOP $2800.00 and OP$2,200.00. In-network contracts would pay anywhere from 5% to 15% of those rates. Out-of-Network claims could pay around 25% to 35% of amount claimed. In addition there are deductibles, co-pays, and co-insurance that affect the actual net on the claims."
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