Net Medical Xpress Solutions, I (NMXS) research, news, and more from GeoInvesting

Company description

Sat, 14 May 2022 15:54:04 GMT

Net Medical Xpress Solutions Inc is engaged in providing solutions to the telemedicine industry. Through its subsidiaries, the company recruits and maintain a cadre of telemedicine physicians together with proprietary software that links electronic medical records while facilitating state-of-the-art conferencing and communications. It also offers a call centre, hardware implementations, staffing and recruiting operations, diagnostic and clinical services, and advanced research and development capabilities.

Research

Mon, 15 Aug 2022 04:00:00 GMT

Confirms Q2 results as previously announced; provides bullish comments for second half

Net Medical Xpress Solutions In (OTC:NMXS) ($0.60; $22.6M market cap), a company engaged in providing solutions to the telemedicine industry, and operator of medical lab virus testing and diagnostics reported Q2 2022 results: Recall, the company had provided preliminary results for Q2 in late July.

Revenue of $1,563,000 compared with total revenue of $315,000 in the second quarter of 2021
Net income of $405,000 vs a net loss of $139,000

"Our FDA clinical trial businesses also produced good first half results and we have every indication that this part of our business will also be strong in the second half of the year...

...In addition, we expect to see a slow but steady roll out of the previously announced BIOFIRE® Joint Infection (JI) panel to reach orthopedic surgeons throughout the country. Early indications from physicians and surgeons who have been contacted are very positive about this exclusive new test for septic arthritis and infections in the joints. As I have said before, this could possibly become a significant business segment for Net Medical.

We are currently considering purchasing new locations in Taos and Albuquerque for the purpose of setting up permanent lab locations for testing and other laboratory services. I expect to have more to say about this in the second half,"

Results were sequentially down from Q1. As we have stated we still need to determine how the financials will look if Covid testing related revenue dissipates over time.

Research

Sun, 31 Jul 2022 04:00:00 GMT

Net Medical Xpress Solutions In (OTC:NMXS), a company engaged in providing solutions to the telemedicine industry, and operator of medical lab virus testing and diagnostics reported preliminary Q2 2022 results:

Revenue of $1,563,000 compared with total revenue of $315,000 in the second quarter of 2021
Net income of $405,000 vs a net loss of $139,000

Our daily Covid testing program and our FDA clinical trial businesses have been generally solid although we faced some challenges in adjustments caused by unpredictable changes in Federal insurance reimbursements. This included an abrupt cancellation in the middle of March of the Health Resources and Services Administration (HRSA) program that covered uninsured patients.

"At the same time, we experienced a dip in our daily Covid testing program. However, that began to pick up again in late May and has been strong ever since. We are currently seeing up to 30% Covid positive tests on some days underscoring the ongoing need for our mobile testing program supported by the New Mexico Department of Health,"

Results are sequentially down from Q1, still need to determine what post Covid testing business will look like.

Research

Tue, 21 Jun 2022 15:08:18 GMT

Net Medical Xpress Solutions In (OTC:NMXS) ($0.57, $21.4 million market cap), a company engaged in providing solutions to the telemedicine industry, announced it is broadening its FDA clinical trial programs with a new strategic partnership with Accorto Regulatory Solutions.

"We're expanding our CLIA Moderate Complex Lab to assist regulatory firms with human factor studies and clinical trials for virus tests. The new joint effort with Accorto Regulatory Solutions is specifically designed to help small to mid-sized domestic and international companies bring their FDA regulated products to market.

FDA Clinical Trials are essential steps in the process for regulatory firms to meet the requirements of either EUA (Emergency Use Authorizations) or 510k clearances for their products. Net Medical assists firms like Accorto to streamline the process of filing with the FDA to meet the strict procedures necessary to comply with federal regulations."

On May 16th 2022, we released our RFT (Reasons For Tracking) on NMXS. One of our major concerns at the time was the company’s ability to generate revenue outside of the sales that its COVID related services offered. We stated::

“We obviously have great uncertainty over whether growth can be maintained if business prospects will be primarily related to the company’s COVID services. We are generally not going to be particularly excited if NMXS is just a COVID story, as this source of revenue could be temporary or not substantially recurring as we exit the pandemic (unless testing becomes government or employer mandated).”

Today’s news seems to be a step in the right direction. We plan to follow up with management to understand this relationship in more detail, but comments from NMXS’s CEO point to this development increasing the total addressable market outside COVID-related revenue generation.

"Eventually, EUA designations for COVID products will end. It will be important for companies to be able to transition from EUA clearances to 510k clearances. With our scientists, well-trained staff and lab personnel, Net Medical offers regulatory firms both clinical and human factor services to enhance their own efforts. Our dual language staff provides both English and Spanish trial results."

If it is truly the case that this new partnership does expand the total addressable market outside of COVID and, depending on the timeline, that the company can begin generating related revenue, we think it's an incredibly meaningful development. We love companies that help healthcare customers streamline and get through the FDA clinical trial process. These types of companies tend to carry huge premium valuation multiples on a P/E as well as P/S basis.

Still, the financial aspects of the partnership are unclear to ust we’re unclear, and if the company is “actually” using this partnership to expand its actual COVID-19 related work or broaden its footprint outside of pandemic use cases. This confusion stems from the last paragraph we quoted, where it seems the company is emphasizing the work it has been doing with COVID-19 customers.

We are in the process of scheduling a short Management Briefing with the company’s Founder & CEO to understand the situation more clearly.

Interviews

Tue, 17 May 2022 13:58:24 GMT

5/16/2022 Interview With Net Medical Xpress Solutions (NMXS) Management

Reasons For Tracking

Mon, 16 May 2022 18:59:17 GMT

In yesterday’s Weekly Wrap Up, we gave a little background on why we were going to start tracking Net Medical Xpress Solutions In (OTC:NMXS) ($0.40, $15.1 million market cap), a company engaged in providing solutions to the telemedicine industry. You can now access our newest Reasons For Tracking article on the company, “Will COVID-19 Related Revenue Ultimately Be An Anomaly For Net Medical Xpress?”

Please see the full RFT here.

As referenced in the article, we’d need to speak with management to get more clarity on a few things. It just so happens that we will be speaking with them today about the following topics that NMXS says are interrelated and will convey the direction of the business as a whole.

Overall discussion of COVID-19 as it relates to Net Medical.
What Test-to-Treat is all about - How is it different from others?
Reporting Software - Why this is connected to the whole?
How are vitamins also connected in a unique way?
The business of regulatory FDA activity.
The role of the moderate complex CLIA medical lab.

Thanks!

Again, see the full RFT here.