MediXall Group, Inc. (MDXL)·Q3 2016 Earnings Summary

Executive Summary

• Q3 2016 was transitional: Continental Rail Corp. reported no revenue, a net loss of $52,249, $0.00 EPS, and ended the quarter with $155 in cash; working capital deficit expanded to $1.18M .
• Management executed a strategic pivot to healthcare: signed an LOI on Nov 3 to acquire IHL of Florida (MediXall), followed by a name change to MediXall Group, a 1-for-15 reverse split (effective Nov 22), and completion of the share exchange on Dec 13 .
• Operating expense run-rate guidance was reduced to ~$200k/year in Q3 from ~$300k/year in prior quarters, reflecting cost controls during the pivot .
• No earnings press release (8-K 2.02) or call transcript was filed for Q3; Wall Street consensus estimates via S&P Global were unavailable for MDXL, limiting beat/miss analysis. The key stock-reaction catalysts were the reverse split, rebranding, and healthcare platform narrative .

What Went Well and What Went Wrong

What Went Well

• Significant operating expense reduction: Q3 operating expenses fell 59% YoY; nine-month OpEx decreased 53% YoY due to “continued inactivity” as management prepared the healthcare pivot .
• Strategic pivot progress: “On November 3, 2016… [MDXL] entered into a Letter of Intent… to acquire… IHL of Florida,” advancing the MediXaid marketplace and healthcare IP strategy .
• Clear mission articulation: “Our mission is to revolutionize the medical industry… enabling more efficient, cost-effective healthcare for the consumer,” anchoring future strategy and platform development .

What Went Wrong

• No revenue generation: Company recorded $0.00 revenue in Q1–Q3 2016; all quarters posted losses, with cash extremely limited ($155 at Q3-end) .
• Going concern risk and leverage to related parties: Management disclosed substantial doubt about continuing as a going concern; burn rate ~$10,000/month and reliance on related-party advances (e.g., TBG, R3) persisted .
• Balance sheet deterioration: Total assets declined to $155 in Q3 (from $25,000 in Q2), while current liabilities rose and working capital deficit widened to $1.18M .

Financial Results

Summary (Q1–Q3 2016)

Balance Sheet and Liquidity

Operating Cash Flow and Payables

Notes:

• Margin metrics (EBITDA Margin %, Net Income Margin %) are not meaningful due to zero revenue across periods .
• No segment revenue breakdown applies; operations were inactive as management pivoted strategy .

Guidance Changes

No guidance was provided for revenue, margins, OI&E, tax rate, or dividends in Q3 materials .

Earnings Call Themes & Trends

No Q3 2016 earnings call transcript was filed; themes below reflect Management’s Discussion & Analysis and 8-K disclosures.

Management Commentary

• “On November 3, 2016… [CRCX] entered into a Letter of Intent… [to] acquire… IHL… in exchange for… shares of common stock,” signaling the strategic pivot and pipeline for the MediXaid marketplace .
• “MEDIX is currently in development of a cloud-based electronic marketplace titled MediXaid… consumers… will be able to purchase… in a reverse auction,” highlighting the value proposition around cost and convenience .
• “Our mission is to revolutionize the medical industry by improving communication; providing better technology… enabling more efficient, cost-effective healthcare for the consumer,” emphasizing the strategic vision .
• Liquidity caution: “These factors raise substantial doubt about our ability to continue as a going concern… operating expenses will be approximately $200,000 per year until… generating revenues,” underscoring funding needs and cost control .

Q&A Highlights

No earnings call or analyst Q&A was filed for Q3 2016 . Guidance clarifications were provided only via MD&A and 8-K disclosures (see Guidance Changes and Management Commentary) .

Estimates Context

Wall Street consensus via S&P Global was unavailable for MDXL for the 2016 quarters due to missing mapping; therefore, comparisons to estimates cannot be provided (SPGI/Capital IQ mapping not found for MDXL). Estimates are unavailable.

Key Takeaways for Investors

• Liquidity risk remains acute: cash of $155, widening working capital deficit, and continued reliance on related-party advances; near-term viability hinges on external financing and cost discipline .
• Strategic pivot is the core narrative: LOI and subsequent share exchange establish the MediXall healthcare platform and IP base; rebranding and reverse split aim to reposition the company .
• Expense control improving: OpEx run-rate guidance cut to $200k/year, but ongoing burn ($10k/month) without revenue requires funding before commercialization .
• No operational revenue or margins to assess: investment case is pre-revenue and execution-dependent on building the MediXaid marketplace and monetizing IP/licensing .
• Near-term trading catalysts are corporate actions and strategic newsflow (name/symbol change, reverse split, transaction completion), not fundamentals .
• Risk/reward skewed by going concern warnings; any financing or credible commercialization milestones could shift narrative and reduce solvency risk .
• Absence of sell-side coverage or consensus estimates limits near-term expectations anchoring; monitor filings for guidance, funding, and product launch timelines .