Praxsyn Corp (OTCMKTS:PXYN) Is Waiting for the Next 10-Q

Praxsyn Corp (OTCMKTS:PXYN)’s report for the third quarter of 2015 isn’t due until a few weeks from now, but it’s already starting to affect the stock performance. Yesterday, for example, people traded more than $107 thousand worth of shares and they pushed the stock up to a close of just under $0.015 (a 25% jump).

Apart from the upcoming 10-Q, there really is nothing else that could be triggering the surge. There’s been no news recently, the latest filing contains the report for the second quarter, and we can find no traceable promotions.

Many people reckon that the upcoming statement will contain some positive figures and they’re not afraid to share their opinion through the message boards and social networks. But will the 10-Q really be as good as the stock’s supporters think?

Only time will tell. What we can say, however, is that its predecessors set the bar rather high. Here for example, is what the financials looked like at the end of Q2:

  • cash: $4.8 million
  • current assets: $13.7 million
  • current liabilities: $20.2 million
  • quarterly revenues: $17.6 million
  • quarterly net income: $3.2 million

The 10-Q’s not perfect. The working capital deficit is quite huge and there’s been a 24% drop in revenues on a year-over-year basis which goes to show that consistency is not among PXYN‘s traits for the time being. It must be said, however, that even if the upcoming report shows a slight slip-up in the sales, this shouldn’t be too much of a problem for PXYN, especially if the net income stays intact.

If we have to summarize the report, we would probably say that these are not the figures you’d expect to find in the 10-Q of an OTC company that is barely hanging on to the $0.01 per share mark. This means that we now have to find out why PXYN is barely handing on to the $0.01 per share mark.

Dilution seems to be playing a major role. During the first half of the year alone, the number of issued and outstanding shares grew from just under 452 million all the way to 625 million. Most of the newly printed common stock seems to be coming from conversion of Series D Preferred shares and at the end of June, there were around 204 thousand of the Series D shares in question still issued and outstanding. These could potentially be converted into nearly 204 million common shares.

This is definitely worth bearing in mind and so is the historical lack of liquidity. It too has contributed to PXYN‘s inability to gain some ground. About a year ago, for example, the market sentiment towards the ticker was pretty much the same. The report for the third quarter of 2014 was coming and people were quite excited about its contents. The figures, when they came out, were not bad, far from it, but they failed to keep investors interested for long and after the volumes dried up, the ticker plummeted from $0.08 per share eleven and a half months ago all the way to the current levels.

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