Exchange: OTC | Sector: Healthcare | Industry: Medical Healthcare Information Services
Q3 2024
Published: Apr 17, 2024
Earnings Highlights
EPS of $0.00 increased by 77.8% from previous year
Net income of -8.81K
"Not available in the provided data." - N/A
PreAxia Health Care Payment Systems Inc (PAXH) QQ3 2024 Results — Limited Revenue Visibility, Elevated R&D/G&A Outlays and Balance Sheet Strain
Executive Summary
- The Q3 2024 results for PreAxia Health Care Payment Systems Inc show a negative bottom line with no revenue disclosed in the available data. Reported figures indicate an operating loss of 8,810 USD and an EPS of -0.0004, driven by R&D and G&A expenses totaling 8,810 USD (R&D 2,436; G&A 6,374). Depreciation and amortization of 8,810 USD appears to be recorded as a component of operating expenses, resulting in a net EBITDA of -8,810 and an operating loss of -8,810 for the quarter.
Key Performance Indicators
Operating Income
-8.81K
QoQ: 80.47% | YoY:75.86%
Net Income
-8.81K
QoQ: 80.47% | YoY:75.86%
EPS
0.00
QoQ: 82.61% | YoY:77.78%
Revenue Trend
Margin Analysis
Key Insights
Revenue: Not disclosed in the provided data (N/A).
- Revenue: Not disclosed in the provided data (N/A).
- Gross Profit: N/A
- Operating Income: -8,810 USD (YoY +75.86%, QoQ +80.47%)
- Net Income: -8,810 USD (YoY +75.86%, QoQ +80.47%)
- EPS: -0.0004 USD (Diluted -0.0004) (YoY +77.78%, QoQ +82.61%)
- Cash from operations: -3,548 USD; Net change in cash: -674 USD; Cash at end of period: 1,194 USD
- Balance sheet: Total assets 1,194 USD; Total liabilities 2,392,762 USD; Total stockholders’ equity -2,391,568 USD
- Leverage: Total debt 1,716,906 USD; Net debt 1,715,712 USD; Short-term debt 1,792,036 USD
- Liquidity ratios (per the data): Current ratio 0.000499, Quick ratio 0.000499, Cash ratio 0.000499
- Returns: ROA -7.38%, ROE 0.37%, Return on capital employed 0.37%
- Shares outstanding: 19,767,698
- Key note: Revenue remains undisclosed in the supplied dataset; the balance sheet appears to show a significant imbalance (assets far below liabilities) suggesting possible data integrity issues or an extremely distressed balance sheet.
Income Statement
Metric
Value
YoY Change
QoQ Change
Operating Income
-8.81K
75.86%
80.47%
Net Income
-8.81K
75.86%
80.47%
EPS
0.00
77.78%
82.61%
Key Financial Ratios
currentRatio
0
returnOnAssets
-738%
returnOnEquity
0.37%
debtEquityRatio
-0.72
operatingCashFlowPerShare
$-0
freeCashFlowPerShare
$-0
priceToBookRatio
-0.47
priceEarningsRatio
-31.97
Net Income vs. Revenue
Expense Breakdown
Management Commentary
- Earnings call transcript and management commentary are not provided in the supplied data. As a result, there are no direct management quotes or thematic highlights to summarize. Should a transcript be made available, the highlights would typically cover strategy execution, product commercialization plans, customer pipeline, and capital roadmap.
Not available in the provided data.
— N/A
Not available in the provided data.
— N/A
Forward Guidance
- No explicit forward guidance is contained in the provided data. Given the absence of revenue in QQ3 2024 and a clear negative cash flow print, the near-term outlook hinges on either securing revenue traction or obtaining external financing to address liquidity needs. Investors should monitor:
- Any disclosed revenue recognition milestones, customer wins, or pilot/commercial deployments for the health care payment platform.
- Updates on liquidity runway, debt refinancing, or capital raises.
- Management commentary on cost optimization, product commercialization timing, and partner ecosystems (payers, providers, or third-party administrators).
- Regulatory developments affecting health care payments infrastructure and data security obligations.
- Cash burn rate progression and any potential reduction in G&A or R&D to extend runway.
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
PAXH Focus
0.00%
0.00%
0.37%
-31.97%
DTRK
0.00%
0.00%
0.00%
0.00%
FOXO
-6.00%
-350.70%
33.00%
-35.30%
JRSS
74.90%
-8.78%
-25.10%
-43.11%
MITI
0.00%
0.00%
8.88%
-2.58%
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
Given the presented QQ3 2024 data, the investment outlook for PAXH is cautious. The company exhibits a negative net income with no revenue disclosed, combined with a fragile balance sheet (assets far below liabilities) and meaningful short-term debt. The path to a constructive investment thesis would require clear visibility on revenue generation, a sustainable cost structure, and a credible liquidity plan (e.g., financing, partnerships, or monetization milestones). In the near term, investors should focus on liquidity runway, any announced commercialization milestones, and the company’s ability to refinance or reduce near-term obligations. Absent material revenue and a credible plan to achieve profitability, the stock remains highly speculative.
Key Investment Factors
Growth Potential
If successful in monetizing its health care payment platform and online access system, growth could accelerate through partnerships with payers, providers, or benefit administrators, eventually achieving scale in healthcare payments processing and card-based health spending accounts.
Profitability Risk
1) Severe projected liquidity constraints given liabilities exceed assets in the reported data; 2) Revenue is not disclosed, making sustainability and unit economics highly uncertain; 3) Dependence on external financing or asset-light partnerships; 4) Execution risk in product commercialization and customer adoption; 5) Regulatory/compliance risk in healthcare payments and data handling.
Financial Position
The balance sheet shows total assets of 1,194 USD against total liabilities of 2,392,762 USD and negative equity of -2,391,568 USD, with short-term debt of 1,792,036 USD and total debt of 1,716,906 USD. Cash balance at period end is 1,194 USD, and operating cash flow was negative by 3,548 USD. The data imply an extreme liquidity and capitalization challenge, potentially limiting willingness of counterparties to engage without financing assurances.
SWOT Analysis
Strengths
Niche focus in healthcare payment processing and health spending accounts; potential platform synergies with online access systems and card-based payments.
Weaknesses
No disclosed revenue in QQ3 2024 data; negative earnings and EBITDA; significant liabilities relative to assets; negative stockholders’ equity; very small cash balance; weak liquidity signals.
Opportunities
Growing demand for digital healthcare payments infrastructure; potential partnerships with payers, providers, or TPAs; opportunities to monetize card-based health payment programs and HSAs as platforms scale.
Threats
Regulatory risk in healthcare payments and data privacy; competitive pressure from established HCIS players; need for external financing to sustain operations; execution risk around achieving revenue growth and customer adoption.
PreAxia Health Care Payment Systems Inc (PAXH) QQ4 2024 Earnings Analysis – Severe liquidity stress and negative profitability in Healthcare IT Paym...
PreAxia Health Care Payment Systems Inc (PAXH) QQ2 2024 Earnings Review – Weak Revenue Visibility, Acute Liquidity Strains, and Cash Burn in Healthc...