Exchange: OTC | Sector: Healthcare | Industry: Medical Healthcare Information Services
Q2 2025
Published: Jan 13, 2025
Earnings Highlights
EPS of $0.00 increased by 69.6% from previous year
Net income of -13.67K
"N/A" - N/A
PreAxia Health Care Payment Systems Inc (PAXH) QQ2 2025 Results – Healthcare Payments Platform Faces Liquidity and Profitability Challenges
Executive Summary
PreAxia Health Care Payment Systems Inc (PAXH) reported QQ2 2025 with no disclosed revenue in the available data. The quarter shows a net loss of $13,666 and an EBITDA of -$13,666, driven entirely by operating expenses of $13,666. The company generated modest operating cash flow of $2,945, but the balance sheet reveals severe liquidity constraints: cash of $165, total current liabilities of $2,414,637, and long-term liabilities largely unreported, resulting in negative stockholders’ equity of approximately −$2.41 million. This raises material solvency concerns and questions about near-term financing needs and corporate trajectory.
Key Performance Indicators
Operating Income
-13.67K
QoQ: -195.35% | YoY:69.70%
Net Income
-13.67K
QoQ: -195.35% | YoY:69.70%
EPS
0.00
QoQ: -250.00% | YoY:69.57%
Revenue Trend
Margin Analysis
Key Insights
Revenue: Not disclosed in the QQ2 2025 dataset
Gross Profit: Not disclosed
Operating Income: −$13,666; YoY change: +69.70% (negative numbers imply the base quarter was more negative; interpret with caution), QoQ change: −195.35%
Net Income: −$13,666; YoY change: +69.70%, QoQ change: −195.35%
EBITDA: −$13,666
Financial Highlights
Overview of QQ2 2025 financials and QoQ/YoY context, where data is available:
- Revenue: Not disclosed in the QQ2 2025 dataset
- Gross Profit: Not disclosed
- Operating Income: −$13,666; YoY change: +69.70% (negative numbers imply the base quarter was more negative; interpret with caution), QoQ change: −195.35%
- Net Income: −$13,666; YoY change: +69.70%, QoQ change: −195.35%
- EBITDA: −$13,666
- EPS (diluted): −$0.0007; YoY: +69.57%, QoQ: −250.00%
- Weighted average shares outstanding: 19,767,698
- Cash flow from operations: $2,945; Free cash flow: $2,945; Net change in cash: $164
- Cash and cash equivalents: $165 at period end
- Balance sheet (selected): Total assets $165; Total liabilities $2,414,637; Total stockholders' equity $(2,414,472); Short-term debt $1,716,907; Accounts payable $466,641; Other current liabilities $231,089; Retained earnings $(5,146,673)
- Liquidity ratios: Current ratio ≈ 0.0000683; Quick ratio ≈ 0.0000683; Cash ratio ≈ 0.0000683
- Valuation metrics (illustrative, given negative earnings/equity): P/E ≈ −20.61; Price-to-book ≈ −0.467; Debt to equity ratio ≈ −0.711; Enterprise value multiple ≈ −208.07
- Four-quarter trend (selected): Q2 2025 net income −$13,666; Q1 2025 net income −$4,627; prior quarters likewise negative; indicates ongoing quarterly losses with limited visibility on revenue recovery.
Income Statement
Metric
Value
YoY Change
QoQ Change
Operating Income
-13.67K
69.70%
-195.35%
Net Income
-13.67K
69.70%
-195.35%
EPS
0.00
69.57%
-250.00%
Key Financial Ratios
currentRatio
0
returnOnAssets
-8282%
returnOnEquity
0.57%
debtEquityRatio
-0.71
operatingCashFlowPerShare
$0
freeCashFlowPerShare
$0
priceToBookRatio
-0.47
priceEarningsRatio
-20.61
Net Income vs. Revenue
Expense Breakdown
Management Commentary
No earnings call transcript data available in the provided dataset. Therefore, no management quotes or thematic transcript highlights can be cited. If a transcript becomes available, the synthesis should group quotes by themes (e.g., strategy, operations, market conditions) and contextualize each quote with why it matters for investors.
N/A
— N/A
N/A
— N/A
Forward Guidance
No explicit forward guidance appears in the provided QQ2 2025 dataset. Absent stated targets, investors should monitor for: (1) revenue disclosure and growth trajectory, (2) liquidity improvements (credit facilities, capital raises, or debt refinancings), (3) progress against product development milestones for health care payment processing and online access/health spending accounts, and (4) any commensurate improvement in working capital efficiency. Given the current balance sheet weaknesses, forward-looking statements, if any, would likely hinge on securing additional equity or debt financing and achieving meaningful revenue generation to support profitability.
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
PAXH Focus
0.00%
0.00%
0.57%
-20.61%
DTRK
0.00%
0.00%
0.00%
0.00%
FOXO
-10.70%
-56.75%
13.40%
-3.38%
JRSS
31.20%
-19.90%
13.84%
-83.02%
MITI
1.00%
-56.65%
2.72%
-94.90%
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
Given the QQ2 2025 data, the investment outlook is highly risk-weighted. The company exhibits extreme liquidity stress and negative equity with no revenue disclosure, which significantly elevates credit and equity risk. A potential upside would require a credible plan to stabilize liquidity (e.g., equity raise, debt refinancing) and material revenue traction from its healthcare payments platform. Until there is clear visibility on revenue growth, gross margins, and a path to positive free cash flow, the investment remains speculative with a probability-weighted skew toward downside absent a capital-raising event or strategic repositioning.
Key Investment Factors
Growth Potential
Longer-term growth potential resides in expanding a healthcare payments processing platform, including cards and health spending accounts, if the company can achieve revenue visibility and scale. Any monetization of online access systems and B2B processing services could unlock upside, but requires a credible path to revenue and positive cash flow.
Profitability Risk
Material liquidity risk and negative tangible equity present near-term default/financing risks. Lack of disclosed revenue for QQ2 2025 and a balance sheet dominated by liabilities vs. negligible assets signal high insolvency risk. OTC listing status, limited liquidity, and uncertain customer/contract momentum add to execution risk. Regulatory changes in healthcare payments, competitive dynamics, and potential dilutive financing could further dilute equity.
Financial Position
Equity value is negative (approximately −$2.41 million) with total assets of $165 and liabilities of $2.41 million, indicating severe balance sheet fragility. Short-term liquidity is constrained (cash $165; current liabilities $2.41 million). Operationally, only a small cash inflow from operations is reported ($2,945), underscoring the fragile financial position.
SWOT Analysis
Strengths
Business focus on healthcare payments processing and health spending account initiatives aligns with an evolving healthcare payments landscape.
Active development in online access systems and card-based processing could provide scalable platforms if revenue growth is realized.
Weaknesses
No revenue disclosed for QQ2 2025 in the dataset; profitability is negative and cash flow is marginally positive only due to unusual working capital movements.
Severe liquidity constraints: cash of $165 and liabilities of $2.41 million with negative equity, signaling solvency risk.
Lack of disclosed revenue and limited assets impede meaningful valuation and external financing traction.
Opportunities
Rising demand for healthcare payments automation and card-based processing could drive future adoption if the company can secure customers and expand contract velocity.
Potential partnerships or financing arrangements (equity or debt) could stabilize liquidity and enable revenue generation and scale.
Threats
Material default/insolvency risk if additional capital cannot be secured or if revenue remains undisclosed.
Competition from established healthcare IT/payments players with stronger balance sheets and revenue visibility.
Regulatory and compliance risk in healthcare payments could raise operating costs and implementation risk.
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