TYSONS CORNER, Va., Aug. 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 in the Company's most recent 10Q filing.
Revenue generated from ScripsAmerica's joint DoD contract was $1,293,880 for the three months ended March 31, 2013 and $3,249,225 for the six months ended June 31, 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.
As a result, management inserted 'footnotes to the financial statements 3b paragraph 3 and footnote #5, in its recent 10Q explaining why ScripsAmerica must report this way. The management discussion and analysis item 2 in the subparagraph entitled 'Results of Operations' in the filing clearly shows the revenue generated from this shared contract.
"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, which will continue to generate revenue and profits for ScripsAmerica for a minimum of 26 more months," stated CEO, Bob Schneiderman.
"This is in addition to revenues that will be generated from our independent pharmacy distribution deal with a large network, joint venture with Wholesale Rx, RapiMed product distribution in the U.S. and China, and 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.
Safe Harbor Statement
This release includes forward-looking statements, which are based on certain assumptions and reflects management's current expectations. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations. Some of these factors include: general global economic conditions; general industry and market conditions, sector changes and growth rates; uncertainty as to whether our strategies and business plans will yield the expected benefits; increasing competition; availability and cost of capital; the ability to identify and develop and achieve commercial success; the level of expenditures necessary to maintain and improve the quality of services; changes in the economy; changes in laws and regulations, including codes and standards, intellectual property rights, and tax matters; or other matters not anticipated; our ability to secure and maintain strategic relationships and distribution agreements. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
CONTACT: 888-959-7095Source:ScripsAmerica, Inc.