, The Green Pennies Stock Report: 08/14/17

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Monday, August 14, 2017

Progressive Care, Inc. (RXMD) 2nd Quarterly Report Analysis

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Business Information:

Progressive Care, Inc.
Ticker: RXMD
PPS: 0.0179 a/o 8/14/2017
Up 0.0006 or +3.47%

2nd Quarterly Report:

First, let’s start off with Progressive Cares’ consolidated balance sheet (unaudited). RXMD has $514,925 in cash, $1,127,160 in accounts receivable (trade, net), $120 in accounts receivable (other), $406,350 in inventory (net), $56,730 in prepaid expenses, $316,834 in property and equipment (net), and $25,746 in total other assets (deposits). This gives Progressive Care a total of $2,447,865 for their total assets.

Next, we have Progressive Cares’ liabilities. RXMD has $1,410,832 in accounts payable and accrued liabilities, $85,107 in deferred rent liability, $298,081 in notes payable (net of unamortized debt discount and debt issuance costs), $17,836 in capital lease obligations (current portion), $186,130 in unearned revenue, and $7,840 in derivative liability. This gives RXMD a total of $2,005,826 in total current liabilities. Next, we see that RXMD has a long-term liability in the amount of $106,022 for capital lease obligations (net of current portion), thus giving RXMD $2,111,848 in total liabilities. RXMD has a total stockholders’ equity of $336,017 and a total liabilities and stock holders’ equity of $2,447,865.

Finally, let’s look at Progressive Cares’ consolidated statements of income (income statement; unaudited). For the three month period ending on June 30, 2017, we see that RXMD made $5,173,064 in their net sales. RXMD then had $ 3,877,551 for their cost of sales, giving RXMD a gross profit of $1,295,513.

$5,173,064          100%       (Sales, Net)
($3,877,551)   ~-74.957%  (Cost of Sales)
=$1,295,513    ~25.043%   (Gross Profit)

Next, we have RXMD’s selling, general, and administrative expenses. RXMD has $8,484 in bad debt expenses, and $1,412,600 in other selling, general, and administrative expenses. This gives RXMD a (Loss) income from operations amounting in ($125,571).

$1,295,513      ~25.043%     (Gross Profit)
-($1,421,084)    ~-27.471%    (Other selling, general, and administrative expenses; Taken from net sales)
=($125,571)       ~-102.427% (Loss from operations; Taken from net sales)

RXMD then has an additional loss from total other income (expenses) in the amount of ($12,979). This gives RXMD a net loss of ($138,550).

=($125,571)       ~-102.427% (Loss from operations)
-($12,979)          ~0.2509%     (Total other income(expenses, net)
=($138,550)       ~-102.678% (Net Loss)

Analysis:

We would like to focus mainly on the income statement for our analysis. These are the numbers we created for the 1st Quarterly Report…

$4,847,663
($3,268,703)                            ~67.43% in Cost of sales
($1,402,247)                            ~28.93% in Admin Expenses
($13,049)                                 ~0.2692 in Other Expenses
$163,664 Net Profit               ~3.376% of left over revenue

Now let’s compare the numbers from the 2nd Quarterly Report.

$5,173,064          100%       (Sales, Net)
($3,877,551)      ~-74.957%  (Cost of Sales)
-($1,421,084)    ~-27.471%    (Other selling, general, and administrative expenses; Taken from net sales)
-($12,979)          ~0.2509%     (Total other expenses, net)
=($138,550)       ~-102.678% (Net Loss)

Looking at this comparison, the cost of sales has grown %7.527, and Administration Expenses has decreased by 1.459%. This is alarming as this has put RXMD back into the negatives concerning profit.

The major question is, “What is the cause for the %7.527 increase in the cost of sales?”
Did the cost of materials to create their products go up?
Is RXMD spending more to sell their products?

Either way, RXMD needs to resolve this as they obviously can’t continue to run at a loss.

Disclosures:

I wrote this article myself, and it expresses my own opinions. I have no business relationship with any company whose stock is mentioned in this article. I also will not be holding shares in the company in the next two weeks of this articles posting.

I have no positions in any stocks mentioned and have no plans to initiate any positions within the next 72 hours.

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