Welcome, lotsapharm! I appreciate having an expe
Post# of 7769
And as you eluded, while the margins in the compounding field are as good as they are now, this will give the company time to grow its wholesale drug and RapiMed segments. And I understand the margins on each of those buinsesses are fairly settled.
One more thing, thoough the margins are good on the compounding business, Scrips needs to work to lower their SG&A expenses to capitalize on these margins. For example, based on the Q1 report, the COGS are about 27% and selling expenses are about 60%. So, if you take a look at the Q1 numbers, the Main Ave Pharma revs took about an 87% haircut before accounting for the G&A expenses and all of the non-cash, Other Income (Expenses) charges. If the COGS and selling expenses remain the same as Q1 and assuming $4.5 million in MAvP revenues for Q2, I anticipate about $585,000 in cash before the reductions for Q2's G&A expenses and the Other Income (Expenses) charges. So while I expect the company to be cash flow positive at the end of Q2, I do not expect a new profit until Q3. Just as lotsapharm, not trying to be negative, just realistic.