Progressive Care Posts US$7 Million in Revenue in Q2 2019

Progressive Care (OTCQB:RXMD) has announced it has issued is Q2 2019 financial results.

As quoted in the press release:

The Company announced nearly $7 million in net revenues, a 40% increase over the second quarter of 2018. Prescriptions filled increased 46% to 98,000 during 2^nd quarter 2019. The Company reported a non-GAAP loss of $368,00 for the six month period ending June 30, 2019, which is caused by decreasing reimbursements and increasing fees associated with insurance prescription claims resulting in a reduction of net gross margins to approximately 21% for 2019. This loss is partially offset by the addition of Family Physicians Rx (FPRX) which carries higher gross profit margins and net profitability.

The Company completed the acquisition of FPRX on June 1^st, 2019, at which time $1 million was released from escrow. FPRX has lower relative operating costs and higher gross margins than the Company as a whole and is poised to add cash flow and profitability to financial performance of the Company through the rest of the year. The Company recorded approximately $1.4 million in sales from FPRX for June 2019 and estimates that $9.8 million in revenues will be added in total for 2019. FPRX will also add approximately $300,000 in net profitability to the bottom line of the Company.

The Company reiterated to listeners that it is focused on expansion in other geographical areas of Florida and is exploring opportunities in Georgia. These areas present opportunities for better reimbursements and avenues for securing revenue streams not directly tied to insurance billing. The Company continues to pursue the development of its own CBD line through local manufacturers that abide by state regulations. In the interim term the pharmacy does offer access to 4 CBD brands that is has verified the purity and analysis. The pharmacy is actively promoting its expertise in CBD therapies as well other herbal and OTC products to increase the flow of cash-based purchases.

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