Transcript Slide 1

Winter 2015
Safe Harbor Statement
This presentation may contain forward-looking statements which are made pursuant to the safe harbor provisions of Section 21E
of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. Investors are cautioned that
statements which are not strictly historical statements, including, without limitation, statements regarding the plans, objectives
and future financial performance of ScripsAmerica, constitute forward-looking statements which involve risks and uncertainties.
The Company’s actual results may differ materially from those anticipated in these forward-looking statements based upon a
number of factors, including anticipated operating losses, uncertainties associated with research, development, testing and
related regulatory approvals, unproven markets, future capital needs and uncertainty of additional financing, competition,
uncertainties associated with intellectual property, complex manufacturing, high quality requirements, dependence on third-party
manufacturers, suppliers and collaborators, lack of sales and marketing experience, loss of key personnel, uncertainties associated
with market acceptance and adequacy of reimbursement, technological change, and government regulation. For a more detailed
description of the risk factors associated with the Company, please refer to the Company’s periodic reports filed with the U.S.
Securities and Exchange Commission from time to time, including its Annual Report on Form 10-K for the year ended December
31, 2013. Undue reliance should not be placed on any forward-looking statements, which speak only as of the date of this
presentation. The Company undertakes no obligation to update any forward-looking information contained in this presentation.
ScripsAmerica, Inc.
A leading,
vertically integrated provider of a range of specialty
prescription and over the counter pharmaceuticals and medical supplies
Serving large and growing markets:
Specialty Pharmaceuticals & Medical Supplies
Rapid
Growth, Improving Financial Performance, Projecting Q1 Profits:
2014 (P)
2013
Q1 15 (P)
Increase
(in millions, except EPS)
(in millions, except EPS)
(3/31/2015)
Revenues
$ 31.50
$
0.60
$ 30.90
Revenues
$
9.60
Net (Loss)
$ (1.20)
$ (11.30)
$ 10.10
Net Income
$
0.40
EPS
$ (0.01)
$ (0.17)
$
EPS
$
Solid
0.16
-
Balance Sheet/Minimal Debt ($4MM LOC w/Triumph Healthcare)
Exciting growth opportunities:
New Products
New Geographies
New Distributors/Manufacturers
Trading Snapshot
Symbol
Exchange
Price (3/16/15)
Market Capitalization (3/16/15)
52- Week Range
Average Daily Volume
Shares Outstanding/Authorized
Corporate Headquarters
SCRC
OTCBB
$0.12
~ $17 MM
$0.08 - $0.22
500,000
138MM/250MM
Tysons Corner, Virginia
ScripsAmerica: Evolution of A Healthcare Leader



2008
Founded
2010
Operations Commence
2010 – 2012 Pharmaceutical distribution services (primarily McKesson)
 Retail, hospitals, long-term care facilities and government and home
care agencies


2013
2013-2014
McKesson squeezes margins, increases chargebacks
ScripsAmerica Pivots to New Growth Strategy
- Initial (majority) investment in Main Avenue Pharmacy
New Strategy
o Enter Specialty Pharmacy and Independent Pharmacy distribution markets
o Adding other, complementary products
One Platform – Multiple Opportunities
ScripsAmerica
Evolving Operations
Established Operations
Main Avenue
Pharmacy
PIMD
E2014 Revenues
@$29,000,000.00
February ‘15
Revenues
@$554,000.00
Evolving Businesses
Wholesale Rx
RapiMed
$200,000 Order
Pending
Physician
Dispensing
Diabetic
Supplies
700+
Patients Signed
The Specialty Pharmaceuticals Market
 Estimated 1% - 5% of population cannot tolerate medications in standard formulas*
 Specialty pharmacy industry growth drivers:
 Shortages of mass-produced drugs
 Growth in the senior citizen population
 Increased awareness of compounding pharmacies and pharmaceutical applications
 Physicians concerned about prescribing narcotic pain medication (e.g. Oxycontin,
Vicodin, Hydrocodone) and are looking for alternative delivery systems
 Compounding industry:
 $5 billion in Annual Revenues
“A growing number of doctors and patients will likely turn to compounding
pharmacies to prepare medications with alternate doses and strengths”*
*source: IBIS Worldwide
ScripsAmerica’s Specialty Pharma Business

Main Avenue Pharmacy acquired Feb. 14, 2014 (100% effective
October 2014)

Offering a wide variety of specialty pharmaceutical products to
treat pain, scars, wounds, vitamin deficiencies among others

FDA approved and licensed in 10 states
 Additional states being added

Capacity of hundreds of compounding prescriptions/month
 In process of expanding

No manufacturing (subject to more restrictive regulations)
Pre-Approval Avoids Collection Risk

Doctor writes prescription

Submitted for payment to Insurance Company/Third party payers
No Medicaid, Medicare
2006

Prescription approved for payment

Order to compound transmitted to Main Avenue Pharmacy

Bill generated & sent to Insurer/3rd Party Payer

Prescription sent FedEx to patient - who must sign return receipt

Total Payment Cycle Time: 35 days
Case Study: Just One of ScripsAmerica’s Many Products
More than 100 million Americans suffer from chronic pain
 83% reported significant reduction in their pain after using custom-compounded prescription
pain creams
 On average, survey respondents said the creams reduced their pain levels by more than half
 Five percent of respondents say the creams completely eliminated their pain
 38 % reported reducing other oral pain medications while using the creams
 > 83 % of respondents said their pain had eased since starting their use of the non-opioid
prescription creams
 They reported an average reduction of 57 percent in their pain level after directly applying the
creams to the site of their pain, for most recent 24-hour period
 After 4 weeks, patients reported significant improvement in their physical and emotional quality
of life
 Six percent of the patients reported minor adverse effects - such as rashes.
•The results demonstrate the ability of locally-applied prescription creams to deliver significant pain relief over time to
many patients, without the need for patients to rely on opioids and other narcotics.
•The FDA, quoted in the New York Times, said prescription drugs account for about three-quarters of all drug overdose
deaths in the United States, with the number of deaths from narcotic painkillers, or opioids, quadrupling since 1999.
•A 2011 report in the journal Pain Medicine, estimated the total societal cost of prescription opioid abuse at $55.7 billion.
Source: Patient Outcomes Analytics (POA), a research organization, a survey assessing patients' experience with topical
prescription pain creams and their impact on the use of other oral pain medications. POA implemented an Institutional Review
Board (IRB) approved protocol to survey and assess patient outcomes.
Specialty Pharmaceuticals Growth Strategy
 Expand Licensing to New States
 Add Pharmacies
 Two Pharmacies under LOI - will add 30 states
 Bring on Additional Marketing Partners
 Introduce New Products
Other Growth Platforms
 RapiMed
– Child Pain & Fever Relief tablets-
Approval Pending
 PIMD
International
 Physician
 Diabetic
Dispensing Program
Medical Supplies
RapiMed Oral Delivery Technology

Rapid Release, Fast Dissolving Fever & Pain Relief Tablets

Over The Counter Product Manufactured in United States

Regulated dosage (80mg, 160mg) for children 2 – 11

Signed Contract with Distributor in China

$200,000 order pending- $60,000 Cost (Attractive Margins)
 Oral Tablet that dissolves in
25-35 Seconds
 Fruit Flavors-Wild Cherry,
Wild Grape
 Fast Absorption Into System
PIMD International, LLC

Problem: Small chains/individual pharmacies unable to fill
prescriptions for controlled substances

Product manufacturers impose minimum order quantities far
beyond the needs of the smaller operations

Solution: A DEA and State licensed business that represents
independent pharmacies

PIMD licensed by DEA and 14 states for wholesale
distribution of Prescription drugs and OTC branded products

Off to good start
Revenues
January 2015
$135,000
February 2015
$554,000
Physician Dispensing Program
Nearly
all States have regulations governing the dispensing of drugs
by physicians
Typical Regulations:
 Dispensing in limited situations
State agencies licensure
Limit profits on drugs dispensed by physicians
Protect freedom of choice for consumers
Procedural controls - such as labeling and record keeping
ScripsAmerica’s
PDP program facilitates Physician Compliance
Actively Being Marketed - In Discussion with Several Doctors
Goal = 100 dispensing physicians by 12/31/15
Strong, Experienced Leadership Team
Robert Schneiderman, CEO & Founder


Accomplished entrepreneur with proven track record building businesses
and creating value for shareholders
CEO of one of Philadelphia’s leading recruitment firms for 32 years
Jeffrey Andrews, CFO


Finance professional with extensive background creating value with public
companies
CFO - Global Resource Corporation, Judge Information Management
Solutions, and The Judge Group
Other Key Executives
Peter W. Megill, CPA, Corporate Controller
25 years experience
Chad Beene, National Sales Manager
11 years experience
Adam Brosius, Director Business Development
15 years experience
Financial Results
Recent Results of Operations
Significant Improvement
In millions, except EPS
2014 (P)
2013
Net Revenues
$ 31.5
$ 0.60
Operating Income
($ 0.01)
($ 7.4)
Net (Loss)
( $ 1.2)
$(11.3)
+ $ 29.9
+ $ 7.4
+ $ 10.1
EPS
($ 0.01)
($ 0.17)
+ $ 0.16
127.5
68.1
Shares
(P) Preliminary results, subject to final audit
Improvement
First Quarter 2015
Profitable
March 31, 2015
March 31, 2014
(Projected)
(Actual)
(3 months)
(3 months)
Revenue
$ 9,600,000
$ 800,000
Operating Income*
$ 1,001,000
$
Income (loss) from Operations
$
594,000
($ 214,000)
Net Income (loss)**
$
407,000
($1,213,000)
* prior to shares issued for services
** due to NOL, no tax liability recognized
612
Strong & Improving Financial Position
December 31, 2014*
December 31, 2013 *
(000’s omitted)
Cash
Receivables
Inventory
Total Current Assets
$ 730
$ 2,679
$ 1,011
$ 4,699
$ 47
$ 1,089
$ -0$ 1,490
$ 5,659
$ 1,781
Line of Credit
Payables & Accruals
Purchase Order Financing
Deferred Revenue
Total Current Liabilities
$
653
$ 2,268
$
-0 $ 225
$ 3,349
$
99
$ 227
$ 1,037
$ -0 $ 3,188
Preferred Stock
$ 1,043
$ 1,043
Total Equity/(Deficit)
($
0.1)
($ 3,617)
Total Liabilities &
Stockholders Equity
$ 5,659
$ 1,781
Total Assets
* BALANCE SHEET EXCERPTS
Capital Structure
12/31/14
Working Capital
$1.350 MM
12/31/13
($1.698 MM)
149 Shareholders of record
 ~ 50% owned by 10 "Friends & Family" Shareholders
 Preferred Convertible Debt

 - $1MM-Held by Board Member, Convertible into 6MM shares
Term Debt – $233,000, 9% due 9/2016. Holder: Board member
 Convertible Debt: $616,000 convertible at $.175
 Unsecured Debt $300,000 due 12/2015
 A/R Financing of $4,000,000 (Secured)
 Rapidly decreasing high-cost debt
 Significant tax loss carryforwards available


ScripsAmerica – Summary
ScripsAmerica – Strategy
Expand the Compounding Rx Business
-Add new Pharmacies, Products and Formulations
 Launch RapiMeds
 Launch Physician Dispensing Program
 Add New Formulations of the Oral Delivery Technology
 Strategic Acquisitions
 Eliminate Convertible Notes/Pay Off Unsecured Debt
 Uplist to Major Exchange

Valuation*
Multiple of (e) sales
*as of 3/13/15
2014
@0.60X
CONTACT INFORMATION
www.scripsamerica.com
Robert Schneiderman, CEO
800-957-7622 ext 101
[email protected]
Jeffrey J. Andrews, CFO
800-957-7622 ext 102
[email protected]