The JV’s could lead to an earnings contribution in excess of $30,000,000, should full execution among all the parties occur

TOM'S RIVER, N.J., Nov. 15, 2019 (GLOBE NEWSWIRE) --

Dear Shareholders:

The recent closing of two strategic joint ventures; (JV’s) PrimeAxess, Inc. and OpenAxess, gives our public holding company, Quad M Solutions, Inc., the ability to offer independent contractors, GIG economy workers, small group  employers, and entrepreneurs proven quality health insurance and employee benefit options that offer partially self-funded comprehensive major medical health insurance under Federal ERISA law established in 1974, amended. Since nearly 90% of the nation’s largest employers utilize ERISA self-insurance plans, and nearly 15% of small group employers utilize self-funded insurance plans, they have successfully proven its effectiveness. It is time for entrepreneurs and GIG economy workers, who total nearly 60 million workers, to benefit from self-insurance (self-funded) plan options, too. These plans are designed as cost-effective comprehensive major medical plans to replace fully insured health insurance plan programs. These fully insured plans have seen their premium costs double in the last decade, raising plan deductibles while limiting and reducing individual benefits. The US Labor Department statistics show that employee wages have not kept pace with any of these rate increases and barely keep pace with taxes and inflation.

Our program seeks to offer sustainable health insurance plans that provide financial rewards to the insured members for their personal efforts in prevention, wellness, and health outcomes, in contrast to others that penalize all members alike, regardless of their own health conditions.  The immediate cost savings have proven to range from a low of 5% to 10% to as much as 40% to 50% over fully insured health plans. Savings depend on the data received to underwrite the members.

PrimeAxess Inc. JV ownership is 51% owned by NuAxess 2, Inc., a wholly owned subsidiary of Quad M Solutions, Inc. and 49% owned by Infiniti HR Inc.  Infiniti HR is one of the US’s leading Professional Employer Organizations (PEO) that services over 50,000 franchisor related employees as their national PEO provider.  Over the past decade, Infiniti HR has witnessed the growing benefit-cost increases experienced by their Franchisor clients while acting as their PEO. These increased costs are also felt by their client’s franchisee customers.

The franchise business is a competitive marketplace and a driving factor for the rise of the GIG economy. These unsustainable benefit cost increases have a negative impact on many franchisors’ competitiveness. The PrimeAxess health insurance solutions significantly drives down benefit costs and, in many cases, may cause greater use of third party PEO services, as well.  The employer of record option, provided by PrimeAxess, affords the franchise owner a sustainable health insurance and benefit solution that permits the business owner to concentrate on their operations, retain and recruit new employees while remaining highly competitive. Infiniti HR Inc. estimates there are over 500,000 franchisee employees working for their franchisor clients that can now access the PrimeAxess solution. The PrimeAxess solution should produce significantly better ROI for the franchise investment using PrimeAxess solutions.  In fact, the CEO of Infiniti HR and PrimeAxess, Scott Smrkovski and Pat Dileo, CEO of NuAxess 2, Inc. will analyze the over 50,000 franchisor employee lives under contract with Infiniti HR PEO and offer to incorporate our self-funded cost savings through the NuAxess Smart Plan. This will exemplify the cost savings to their franchisee clients. 

Quad M Solutions, Inc., through its subsidiary NuAxess 2, Inc., recently purchased a controlling interest in a staffing company called Valleybrook Consulting, LLC and will file to do business as (DBA) OpenAxess.  OpenAxess uses a partially self-funded health plan program. As the plan administrator, it affords its member employees' health insurance benefits and can contract PEO services through Infiniti HR. OpenAxess will add new sales channels and begin various marketing campaigns focusing on small group employers, and the GIG economy market.  We anticipate reaching 1,000 lives by the end of 2019 and be on track to reach between 10,000 to 40,000 employees by the end of 2020.

It is important to note that Quad M Solutions will consolidate its revenue from these JV’s into Quad M Solutions’ income statement.  To help you understand how these impending employee lives impacts our consolidated revenue and gross income/earnings; assume each life will generate a contribution margin (less sales commission) of $45 per person/per month.  This means each 1,000 lives will add $45,000 of contribution margin each month or $540,000/yr.  If we achieve 20,000 total lives by the end of 2020, then our contribution margin run rate entering 2021 will be $900,000/month or over $10,000,000/year. If we are successful in migrating all 50,000 Infiniti HR lives in the near future, it would mean our achieving a contribution margin of $2,250,000/month or $27 million/year.  The combined run rate amounts could be in excess of $35,000,000. Any penetration of the PEO franchisee lives would magnify these results.

Health Saving Accounts (HSA) are a key part of the NuAxess Smart Plan solution. It is alarming to note that, after 15 years, so few employees fund their health saving accounts. Since 2014, most employee health plans are qualified high-deductible HSA plans, and a one-time tax-free contribution is allowed from an IRA account into the  HSA, which has a unique feature that allows any third-party tax-free contributions into an employee-owned HSA up to the annual contribution limits. This feature removes the burden from both the employer and the employee, and HSAs are the single best retirement plan resource ever given American workers by the IRS and Congress.

Traditionally, American workers have mostly used fully insured status quo health plans purchased from the same few insurance carriers for decades. Until Obamacare (the ‘Affordable Care Act’ - ACA) came along in 2010, there was no impetus for innovation and disruption of the status quo health insurance carriers.

By 2014, when the ACA was mandated, many workers’ health plans qualified as HSA plans, and yet only a small percentage of workers funded their HSA. Funded with pre-tax dollars, the HSA is used for medical purposes with no tax penalties. Funds roll over forever, and one of HSA’s unique features allows third-party tax-free contributions into an employee-owned HSA up to the annual contribution limits.

As it relates to business opportunities in the healthcare marketplace today, none is bigger and more important than the one we have to provide independent contractors and GIG economy workers our health plan benefits program, As CEO, I can state that we have built an effective and scalable eco-system for our company to compete and thrive in the self-funding insurance market. We are perfectly positioned to accomplish our goals and objectives garnering a market share in selected strategic markets.

About INFINITI HR

INFINITI HR is a leading Professional Employer Organization (PEO). The INFINITI HR PEO platform provides full regulatory compliance management, on-demand HR guidance, real-time payroll /tax filing, POS integration, and access into industry leading True-Group Master Policies for workers’ compensation, employment practices liability insurance, and other operational business coverages.

In partnership with INFINITI HR, clients are better positioned to navigate increasingly complex employment-related matters and meet federal and statutory obligations as it relates to human resource administration and compliance, payroll and tax processing, employee benefits, risk management, and safety compliance. INFINITI HR provides multiple service platforms including a professional employer organization (PEO) deliverable as well as administrative service support (ASO) and stand-alone payroll and insurance solutions.

INFINITI HR delivers its solution through an integrated combination of robust cloud technology and an active client relationship that emphasizes high-tech and high-touch interaction. The INFINITI HR Cloud is a 100% web based, easy to use, complete client-centric HRIS platform that couples with INFINITI HR’s expert services, all designed to simplify HR and let our clients focus on growth.

INFINITI HR is an IRS certified PEO, a seven time member of the Inc. 5000 Hall of Fame, and a 2019 Top Workplace in Washington DC by The Washington Post. HR outsourcing solutions nearing $1B in current activity are delivered to a diverse cohort of businesses throughout all 50 states.

About Quad M Solutions, Inc.

Quad M Solutions, Inc., (OTCBB Symbol – MMMM), is a reporting public holding company that collaborates with two wholly owned subsidiaries Quad M Staffing and NuAxess 2, Inc. in providing sustainable solutions for both the millions of small to medium sized group employers and entrepreneurs and independent contractors in the Gig Economy, all of whom are seeking affordable and sustainable health insurance plans, employee benefits, and retirement plans utilizing health saving accounts (HSA).

Using total transparency, Quad M has developed a proprietary eco-system of products and services whereby the patient-doctor relationship is centric to achieving better outcomes through value-based health plans. In a status-quo non-competitive insurance industry monopolistic environment, Quad M has assumed a leadership role in bringing about true innovation to the consumer-driven health care industry.

About NuAxess

NuAxess provides innovative value-based health insurance plans targeting employers with as few as one employee. NuAxess seamlessly facilitates a company’s efforts to self-insuring their employees’ health insurance benefits. Additionally, employers are able to reduce major medical insurance premium costs, offer more competitive benefits to attract and retain workers, provide more benefits, and for the first time ever consumers are in control of their healthcare through an employee/patient/physician-centric relationship. In doing so, healthcare responsibilities are shifted to the employee who engages directly with their chosen doctors, and with fewer middlemen comes less cost for their healthcare.

The NuAxess achieves its ‘solution’ by lowering costs and obtaining greater value by uniting and managing best-in-class strategic business healthcare/benefit partners and transparently utilizing their services bundled together for an end-to-end single source health benefits solution. NuAxess self-insured insurance plans have eliminated coinsurance, copays, restrictive networks, while supporting partially funded employee health saving accounts (HSA), and provides full cost transparency with unrestricted access to use any doctor or hospital. NuAxess manages all the administration through its on-line portals and provides its members legal protections from high cost claims that enables an employer to concentrate on their business and not on all the administrative and complicated insurance benefits.

NuAxess operates nationwide to meet the demand of the rapidly expanding market of small and mid-size group employers as well as the exploding ‘Gig Economy’ (the labor market characterized by independent or freelance workers as opposed to an ever shrinking corporate job market).

Information on Forward Looking Statements

The statements contained herein that are not historical facts are forward-looking statements within the meaning of the federal securities laws (Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934). You can identify such forward-looking statements by the words "expects," "intends," "plans," "projects," "believes," "estimates," "likely," "possibly," "probably," "goal," "opportunity," "objective," "target," "assume," "outlook," "guidance," "predicts," "appears," "indicator" and similar expressions. Forward-looking statements involve a number of risks and uncertainties. In the normal course of business, Quad M Solutions, in an effort to help keep our stockholders and the public informed about our operations, may from time to time issue such forward-looking statements, either orally or in writing. Generally, these statements relate to business plans or strategies, projected or anticipated benefits or other consequences of such plans or strategies, or projections involving anticipated revenues, earnings, profits, pricing, operating expenses or other aspects of operating results. We base the forward-looking statements on our expectations, estimates, and projections at the time such statements are made. These statements are not guarantees of future performance and involve risks and uncertainties that we cannot predict. In addition, we have based many of these forward-looking statements on assumptions about future events that may prove to be inaccurate. The actual results of the future events described in such forward-looking statements could differ materially from those stated in such forward-looking statements.

For Further Information:
Pat Dileo
CEO, Chairman, Quad M Solutions, Inc.
732-423-5520
844-NuAxess