TYSONS CORNER, Va., Nov. 19, 2013 (GLOBE NEWSWIRE) -- CEO of ScripsAmerica, Inc. (OTCBB:SCRC), Bob Schneiderman, today commented on revenue recognition regarding a Department of Defense (DoD) joint venture and Wholesale Rx in the Company's most recent 10Q filing.
Revenue generated from ScripsAmerica's joint DoD contract listed under Item #5 "Sales Impact Due to Net Basis Accounting and Commissions Earned" on page 8 was $1,005,606 for the three months ended September 30, 2013 and $4,269,931 for the nine months ended September 30, 2013. However, due to financial reporting requirements, the Company can report only the net profits from the joint venture and not the top line revenue. This revenue will continue at an accelerated pace for the remainder of 2013 and 2014.
Additionally, the revenue from the Wholesale Rx investment described on page 8 was $188,232 for the three months ended September 30, 2013. The percentage of gross profit paid to ScripsAmerica as of November 1, 2013 from this investment was increased from 12.5% to 20% as is also noted on page 8 under the section titled "Description of Revenues." The total revenue from these two combined sources was $4,458,163 for the nine months ended September 30, 2013.
"It is very important that our shareholders are made aware that the Company's necessary accounting method has a significant impact on the reportable revenues from our DoD joint venture and Wholesale Rx investment, which will continue to generate revenue and profits for ScripsAmerica," stated CEO, Bob Schneiderman.
"This, is in addition to revenues that will be generated from our independent pharmacy distribution deal with a large network, investment in PIMD International LLC, RapiMed product distribution in the US, China and other countries, as well as other potential initiatives which bode well for the Company and its shareholders for the rest of 2013 and beyond. We will continue to report these revenues in the body of our filings and urge our shareholders to take note of these very important financial figures," added Schneiderman.
About ScripsAmerica, Inc.
ScripsAmerica, Inc. is a supplier of prescription, OTC and nutraceutical drugs, delivering pharmaceutical products to a wide range of end users across the health care industry. End users include retail pharmacies, hospitals, long-term care facilities and government and home care agencies. For more information, visit www.ScripsAmerica.com .
