Progressive Care, Inc.

For the quarter ended June 30, 2022, Progressive Care reported overall revenue of approximately $10 million versus $9.6 million in the prior-year quarter, a gain of $400,000. Revenue growth was driven by a $1.1 million increase in pharmacy revenue, partly offset by a $700,000 decline in COVID-19 testing revenue. The company filled approximately 118,000 prescriptions, up 10% year over year from 107,000, and up 6% sequentially from 111,000 in Q1 2022. Gross margin declined to 20% from 27% a year ago. Management said cash was over $2.2 million at June 30, 2022, up from $1.4 million at December 31, 2021, and expected cash to remain around that level through 2022. Forward-looking commentary pointed to continued growth in long-term care, chronic care management, and remote patient monitoring, with RPM expected to launch in Q3 2022. The company also reiterated that the Iliad convertible note balance was $2.7 million, with an extended maturity date of May 2023, and said it still sought a capital raise to pay it off and support an eventual uplist to NASDAQ.

Jay Weisberg said the quarter showed continued improvement across several business segments, especially in 340B covered entities and value-based pharmacy, but he was explicit that profitability remains constrained by inflation, labor and delivery costs, drug reimbursement pressure, and PBM/DIR fees. Strategically, he emphasized shifting focus toward higher-margin long-term care, 340B contract pharmacy, 340B third-party administrative services, chronic care management, and remote patient monitoring. His tone was optimistic but financing-focused, repeatedly stressing the need for capital to fund growth, eliminate dilutive debt, and support a NASDAQ uplist.

Cecile Munnik reported Q2 revenue of about $10 million, up from $9.6 million year over year, and noted that pharmacy revenue increased by $1.1 million while COVID testing revenue fell by $700,000. She said prescription fills rose to about 118,000 from 107,000, and gross margin declined to 20% from 27% because COVID testing carries higher margins than pharmacy operations. She also highlighted a lower operating expense base from reduced salaries, consulting, rent, and amortization, while net loss was affected by unfavorable derivative liability fair value changes tied to the Iliad note. Cash ended the quarter above $2.2 million, and she said the company expected that level to remain roughly stable through 2022.

The questions centered on the Iliad note, financing options, stock performance, the S-1, the reverse split/uplist plan, breakeven timing, and competition. Management said the Iliad convertible debt balance was $2.7 million and the extended maturity date is May 2023, with another extension possible if needed, but the preferred path is to raise capital on better terms and pay it off. On the stock price and uplist questions, management said it believes the market is undervaluing the company and reaffirmed commitment to the reverse split and NASDAQ uplift if required. On breakeven, it said the company is approaching breakeven from retail pharmacy, testing, and 340B operations, with long-term care, RPM, and CCM expected to improve profitability further.