TRxADE HEALTH, INC. (NASDAQ: MEDS) (“TRxADE” or the “Company”), a
health services IT company focused on digitalizing the retail
pharmacy experience by optimizing drug procurement, the
prescription journey and patient engagement in the U.S., today
announced its financial results for the quarter ended March 31,
2023.
2023 and Subsequent Operational
Highlights
TRxADE continued to expand the TRxADE drug
procurement marketplace nationwide, increasing new members
approximately 1,100 for the first quarter of 2023 compared to the
first quarter of 2022, bringing the total registered members to
approximately 14,500+ at March 31, 2023
Management Commentary
Mr. Ajjarapu commented, “The first three months
of 2023 have been an exciting and challenging time for TRxADE. We
continue to focus the Company’s strategic plans and partnerships,
working towards creating sustainable value for our stockholders. I
am pleased with the growth we have experienced in our TRxADE
platform. We continue to achieve key milestones in our internal
roadmap with a focus on innovation and development through our
various complementary growth opportunities.”
First Quarter 2023 Financial
Summary
Consolidated revenues for the first quarter of
2023 compared to the first quarter of 2022 decreased 31% to $2.2
million, compared to $3.2 million, respectively. The decrease in
consolidated revenue was driven by decreased revenue attributed to
our Trxade Prime subsidiary. The revenues generated by the TRxADE
Platform in the first quarter of 2023 compared to 2022 increased 4%
and Trxade Prime year over year revenue declined 70% in 2023
compared to 2022. The subsidiary company Community Specialty
Pharmacy experienced a 16% increase in revenue for the first
quarter 2023 compared to 2022.
Gross profit analysis of comparable fiscal
periods of 2023 and 2022 reflect an increase in gross profits of
$221,000 for the first quarter of 2023 compared to 2022. As a
percent of revenue, consolidated gross profit increased to 69% for
the comparable quarter periods of 2023 and 2022.
Operating expenses for the first quarter of 2023
were $1.9 million, compared to $2.3 million for the first quarter
of 2022.
Net loss for the quarter ended March 31, 2023,
was ($0.7) million, or ($0.07) per basic and diluted share
outstanding, compared to a net loss of ($1.0) million, or ($0.12)
per basic and diluted share outstanding for same period in
2022.
Adjusted EBITDA, a non-GAAP financial measure,
was ($0.06) million for the first quarter 2023, compared to ($0.7)
million for the first quarter 2022. See “Use of Non-GAAP Financial
Information” below, and the reconciliation of Adjusted EBITDA to
GAAP set forth at the end of this release.
Additional metrics related to our key
performance are as follows:
For the three months ended March 31, 2023, the
TRxADE Platform increased its registered users by 8%. Total
registered users increased to approximately 14,500+ from
13,400+, as of March 31, 2023, and 2022, respectively. For the same
comparable periods the TRxADE Platform revenues increased 4% from
$1.38 million for the quarter ended March 31, 2022 to $1.44 million
for the period ended 2023. Sales volume on the TRxADE Platform also
increased year over year by 7% for the comparable fiscal
period.
For the three-month period ended March 31, 2023,
compared to the same period in 2022, Integra Pharma Solutions, LLC
(“TRxADE Prime”) revenue declined 69% from $1.6 million to $0.5
million.
TRxADE Prime also saw improvements in gross
margin. For the first quarter 2023 gross margin was 12% compared to
1% for the first quarter 2022.
The Company is committed to continued efforts
designed to build a strong foundation for Trxade Prime and further
growth.
Conference Call and Webcast
Management will host a conference call on
Monday, May 15, 2023, at 6:00 p.m. Eastern time to discuss TRxADE’s
2023 first quarter financial results. The call will conclude with
Q&A from participants. To participate, please use the following
information:
2023 First Quarter Conference Call and
WebcastDate: Monday, May 15, 2023Time: 6:00 p.m. Eastern
timeU.S. Dial-in: 1-877-425-9470International Dial-in:
1-201-389-0878Webcast:
https://callme.viavid.com/viavid/?callme=true&passcode=13711397&h=true&info=company&r=true&B=6
Please dial in at least 10 minutes before the
start of the call to ensure timely participation.
A playback of the call will be available through
June 15, 2023. To listen, call 1-844-512-2921 within the United
States or 1-412-317-6671 when calling internationally and enter
replay pin number 13737052. A webcast will also be available for 30
days on the IR section of the Trxade Group website or by clicking
the webcast link above.
About TRxADE HEALTH, INC.
TRxADE HEALTH (NASDAQ: MEDS) is a health
services IT company focused on digitalizing the retail pharmacy
experience by optimizing drug procurement, the prescription journey
and patient engagement in the U.S. The Company operates the TRxADE
drug procurement marketplace serving approximately 14,500+ members
nationwide, fostering price transparency and under the Bonum Health
brand, offering patient centric telehealth services. For more
information on TRxADE HEALTH, please visit the Company’s IR website
at investors.trxadegroup.com.
Use of Non-GAAP Financial
Information
In addition to our results calculated under
generally accepted accounting principles in the United States
(“GAAP”), in this earnings release we also present EBITDA and
Adjusted EBITDA which are “non-GAAP financial measures” presented
as supplemental measures of the Company’s performance. They are not
presented in accordance with GAAP. EBITDA represents net income
(loss) attributable to TRxADE before interest, taxes, depreciation
and amortization. Adjusted EBITDA is defined as EBITDA before
stock-based compensation expense, bad debt recovery, bad debt
write-off, gain (loss) on disposal of asset, litigation expenses,
loss (gain) on inventory investment, loss (gain) on impairment of
intangible asset and change in fair value of warrant liability.
EBITDA and Adjusted EBITDA are presented because we believe they
provide additional useful information to investors due to the
various noncash items during the period. EBITDA and Adjusted EBITDA
are also frequently used by analysts, investors and other
interested parties to evaluate companies in our industry. We
believe these non-GAAP financial measures are useful to investors
both because (1) they allow for greater transparency with respect
to key metrics used by management in its financial and operational
decision-making and (2) they are used by our institutional
investors and the analyst community to help them analyze the health
of our business. EBITDA and Adjusted EBITDA have limitations as
analytical tools, and you should not consider them in isolation or
as a substitute for analysis of our operating results as reported
under GAAP. Some of these limitations are EBITDA and Adjusted
EBITDA do not reflect cash expenditures, future requirements for
capital expenditures, or contractual commitments; EBITDA and
Adjusted EBITDA do not reflect changes in, or cash requirements
for, working capital needs; and EBITDA and Adjusted EBITDA do not
reflect the significant interest expense, or the cash requirements
necessary to service interest or principal payments, on debt or
cash income tax payments. Although depreciation and amortization
are noncash charges, the assets being depreciated and amortized
will often have to be replaced in the future, and EBITDA and
Adjusted EBITDA do not reflect any cash requirements for such
replacements. Additionally, other companies may calculate EBITDA
and Adjusted EBITDA differently than TRxADE does, limiting its
usefulness as a comparative measure. EBITDA and Adjusted EBITDA are
not recognized in accordance with GAAP, are unaudited, and have
limitations as analytical tools, and you should not consider them
in isolation, or as substitutes for analysis of the Company’s
results as reported under GAAP. The Company’s presentation of these
measures should not be construed as an inference that future
results will be unaffected by unusual or nonrecurring items. We
compensate for these limitations by providing a reconciliation of
each of these non-GAAP measures to the most directly comparable
GAAP measure. We encourage investors and others to review our
business, results of operations, and financial information in their
entirety, not to rely on any single financial measure, and to view
these non-GAAP measures in conjunction with the most directly
comparable GAAP financial measure. For more information on these
non-GAAP financial measures, please see the section titled
“Reconciliation of Net Income (Loss) attributable to TRxADE HEALTH,
INC., to Earnings before Interest, Taxes, Depreciation and
Amortization (EBITDA) and Adjusted EBITDA”, included at the end of
this release.
Forward-Looking Statements
This press release contains certain statements
that may be deemed to be “forward-looking statements” within the
federal securities laws, including the safe harbor provisions under
the Private Securities Litigation Reform Act of 1995. Statements
that are not historical are forward-looking statements within the
meaning of Section 27A of the Securities Act and Section 21E of the
Securities Exchange Act. Forward-looking statements relate to
future events or our future performance or future financial
condition. These forward-looking statements are not historical
facts, but rather are based on current expectations, estimates and
projections about our company, our industry, our beliefs and our
assumptions. Such forward-looking statements include, but are not
limited to, statements regarding our or our management team’s
expectations, hopes, beliefs, intentions or strategies regarding
the future. In addition, any statements that refer to projections,
forecasts or other characterizations of future events or
circumstances, including any underlying assumptions, are
forward-looking statements. In some cases, you can identify
forward-looking statements by the following words: “anticipate,”
“believe,” “continue,” “could,” “estimate,” “expect,” “intend,”
“may,” “ongoing,” “plan,” “potential,” “predict,” “project,”
“should,” or the negative of these terms or other similar
expressions, but the absence of these words does not mean that a
statement is not forward-looking. Forward-looking statements are
subject to a number of risks and uncertainties (some of which are
beyond our control) that may cause actual results or performance to
be materially different from those expressed or implied by such
forward-looking statements. Accordingly, readers should not place
undue reliance on any forward-looking statements. These risks
include risks relating to agreements with third parties; our
ability to raise funding in the future, as needed, and the terms of
such funding, including potential dilution caused thereby; our
ability to continue as a going concern; security interests under
certain of our credit arrangements ; the fact that we
are exploring strategic alternatives for our Bonum Health, Inc.
subsidiary ; our ability to maintain the listing of our
common stock on the Nasdaq Capital Market, including our current
non-compliance with the continued listing standards of the Nasdaq
Capital Market; risks associated with our operations not being
profitable; the commercial viability of new business lines,
applications, products and technologies, and the costs of such
items; the Company’s stock repurchase program ; the
adoption of the Company’s product offerings; claims relating to
alleged violations of intellectual property rights of others; our
ability to monetize our technological solutions; technical problems
with our websites, apps and products; risks relating to
implementing our acquisition strategies; challenges to the
pharmaceutical supply chain posed by the COVID-19 pandemic or
similar events and related matters; our ability to manage our
growth; negative effects on our operations associated with the
opioid pain medication health crisis; regulatory and licensing
requirement risks; risks related to changes in the U.S. healthcare
environment; the status of our information systems, facilities and
distribution networks; risks associated with the operations of our
more established competitors; regulatory changes; existing and new
competitors which may have more resources than we do; increases in
direct to consumer sales of drugs; healthcare fraud; COVID-19,
governmental responses thereto, economic downturns and increased
inflation and possible recessions caused thereby; changes in laws
or regulations relating to our operations; privacy laws; system
errors; dependence on current management; our growth strategy;
dilution which may be caused by future offerings; increased
inflation and interest rates, including the increased costs of
raising funding as a result thereof; and supply chain issues caused
by among other things, recessions and global conflicts. Additional
information about these and other factors that could cause the
Company’s results to differ materially from these forward-looking
statements can be found in the Company’s filings with the
Securities and Exchange Commission, including our Annual Report on
Form 10-K for the year ended December 31, 2022, which are available
at www.sec.gov and in the “NASDAQ:MEDS” — “SEC Filings” section of
the Company’s website at https://www.investors.trxadehealth.com.
Forward-looking statements speak only as of the date they are made.
The Company undertakes no obligation to update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise that occur after that date, except as
otherwise provided by law.
Investor Relations:
IR@trxade.comInvestors.trxadegroup.com
TRxADE HEALTH,
INC.Consolidated Balance Sheets
|
|
March 31, |
|
|
December 31, |
|
|
|
2023 |
|
|
2022 |
|
Assets |
|
|
|
|
|
|
|
|
Current
Assets |
|
|
|
|
|
|
|
|
Cash |
|
$ |
1,194,079 |
|
|
$ |
1,111,156 |
|
Accounts receivable, net |
|
|
707,914 |
|
|
|
728,601 |
|
Inventory |
|
|
126,254 |
|
|
|
119,582 |
|
Prepaid assets |
|
|
357,866 |
|
|
|
110,945 |
|
Current assets of discontinued operations |
|
|
- |
|
|
|
22,837 |
|
Total Current Assets |
|
|
2,386,113 |
|
|
|
2,093,121 |
|
|
|
|
|
|
|
|
|
|
Property plant and equipment, net |
|
|
62,393 |
|
|
|
65,214 |
|
Intangible assets and capitalized software, net |
|
|
537,917 |
|
|
|
450,845 |
|
Deposits |
|
|
49,031 |
|
|
|
49,031 |
|
Operating lease right-of-use assets |
|
|
1,002,317 |
|
|
|
1,051,815 |
|
Total Assets |
|
$ |
4,037,771 |
|
|
$ |
3,710,026 |
|
|
|
|
|
|
|
|
|
|
Liabilities and Shareholders’ Equity |
|
|
|
|
|
|
|
|
Current
Liabilities |
|
|
|
|
|
|
|
|
Accounts payable |
|
|
515,766 |
|
|
|
682,653 |
|
Accrued liabilities |
|
|
303,225 |
|
|
|
290,013 |
|
Other current liabilities |
|
|
229,165 |
|
|
|
67,517 |
|
Contingent funding liabilities |
|
|
789,286 |
|
|
|
108,036 |
|
Current portion lease liabilities |
|
|
204,064 |
|
|
|
196,872 |
|
Warrant liability |
|
|
508,642 |
|
|
|
588,533 |
|
Notes payable— related party |
|
|
- |
|
|
|
166,667 |
|
Current liabilities of discontinued operations |
|
|
- |
|
|
|
46,500 |
|
Total Current liabilities |
|
|
2,550,148 |
|
|
|
2,146,791 |
|
|
|
|
|
|
|
|
|
|
Long Term
Liabilities |
|
|
|
|
|
|
|
|
Other long-term liabilities — leases |
|
|
832,483 |
|
|
|
887,035 |
|
Notes payable- related party |
|
|
- |
|
|
|
333,333 |
|
|
|
|
|
|
|
|
|
|
Total
Liabilities |
|
|
3,382,631 |
|
|
|
3,367,159 |
|
|
|
|
|
|
|
|
|
|
Stockholders’
Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Series A preferred stock, $0.00001 par value; 10,000,000 shares
authorized; none issued and outstanding, as of March 31, 2023 and
December 31, 2022. |
|
|
- |
|
|
|
- |
|
Common stock, $0.00001 par value; 100,000,000 shares authorized;
10,210,878 and 9,393,708 shares issued and outstanding, as of March
31, 2023 and December 31, 2022, respectively |
|
|
100 |
|
|
|
99 |
|
Additional paid-in capital |
|
|
20,560,499 |
|
|
|
20,482,573 |
|
Retained deficit |
|
|
(19,905,459 |
) |
|
|
(19,719,536 |
) |
Total |
|
|
655,140 |
|
|
|
763,136 |
|
Non-controlling interest in subsidiary |
|
|
- |
|
|
|
(420,269 |
) |
Total stockholders’ equity |
|
|
655,140 |
|
|
|
342,867 |
|
|
|
|
|
|
|
|
|
|
Total Liabilities and
Stockholders’ Equity |
|
$ |
4,037,771 |
|
|
$ |
3,710,026 |
|
TRxADE HEALTH,
INC.Consolidated Statements of
Operations
|
|
For the Three Months Ended March 31, |
|
|
|
2023 |
|
|
2022 |
|
|
|
|
|
|
|
|
Revenues |
|
$ |
2,247,750 |
|
|
$ |
3,240,272 |
|
Cost of sales |
|
|
690,670 |
|
|
|
1,904,569 |
|
Gross Profit |
|
|
1,557,080 |
|
|
|
1,335,703 |
|
|
|
|
|
|
|
|
|
|
Operating
Expenses: |
|
|
|
|
|
|
|
|
Wage and salary expense |
|
|
905,901 |
|
|
|
1,069,958 |
|
Professional fees |
|
|
139,661 |
|
|
|
101,009 |
|
Accounting and legal expense |
|
|
248,217 |
|
|
|
236,221 |
|
Technology expense |
|
|
233,286 |
|
|
|
245,785 |
|
General and administrative |
|
|
377,421 |
|
|
|
651,302 |
|
Total operating expenses |
|
|
1,904,486 |
|
|
|
2,304,275 |
|
Operating
Loss |
|
|
(347,406 |
) |
|
|
(968,572 |
) |
|
|
|
|
|
|
|
|
|
Nonoperating income
(expense) |
|
|
|
|
|
|
|
|
Change in fair value of warrant liability |
|
|
79,891 |
|
|
|
- |
|
Interest income |
|
|
4,198 |
|
|
|
- |
|
Gain on disposal of asset |
|
|
- |
|
|
|
4,100 |
|
Interest expense |
|
|
(62,392 |
) |
|
|
(1,364 |
) |
Total nonoperating expense |
|
|
21,697 |
|
|
|
2,736 |
|
Net Loss from
continuing operations |
|
|
(325,709 |
) |
|
|
(965,836 |
) |
|
|
|
|
|
|
|
|
|
Net Loss on
discontinued operations, net of tax |
|
|
(352,244 |
) |
|
|
- |
|
|
|
|
|
|
|
|
|
|
Net loss attributable to
TRxADE Health, Inc. |
|
$ |
(677,953 |
) |
|
$ |
(960,147 |
) |
|
|
|
|
|
|
|
|
|
Net loss attributable to
non-controlling interests |
|
|
- |
|
|
|
(5,689 |
) |
|
|
|
|
|
|
|
|
|
Basic and diluted net loss per
common share: |
|
|
|
|
|
|
|
|
Continuing operations |
|
$ |
(0.03 |
) |
|
$ |
(0.12 |
) |
Discontinued operations |
|
$ |
(0.04 |
) |
|
$ |
- |
|
Net loss attributable to
common stockholders |
|
$ |
(0.07 |
) |
|
$ |
(0.12 |
) |
Weighted average common shares
outstanding - basic and diluted |
|
|
10,060,735 |
|
|
|
8,178,124 |
|
TRxADE HEALTH,
INC.Consolidated Statements of Cash
Flows
|
|
Three months Ended March 31, |
|
|
|
2023 |
|
|
2022 |
|
Cash flows from
operating activities: |
|
|
|
|
|
|
|
|
Net loss from continuing operations |
|
$ |
(677,953 |
) |
|
$ |
(965,836 |
) |
Adjustments to reconcile net loss to net cash used in operating
activities: |
|
|
|
|
|
|
|
|
Depreciation expense |
|
|
2,821 |
|
|
|
3,972 |
|
Options expense |
|
|
14,434 |
|
|
|
32,783 |
|
Common stock issued for services |
|
|
63,486 |
|
|
|
32,083 |
|
Bad debt expense |
|
|
(32,074 |
) |
|
|
1,317 |
|
Gain on sale of asset |
|
|
- |
|
|
|
(1,900 |
) |
Amortization of right of use assets |
|
|
49,498 |
|
|
|
54,328 |
|
|
|
|
|
|
|
|
|
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
Other assets |
|
|
- |
|
|
|
(149,229 |
) |
Accounts receivable, net |
|
|
52,761 |
|
|
|
(63,237 |
) |
Prepaid assets and deposits |
|
|
(22,866 |
) |
|
|
(172,857 |
) |
Inventory |
|
|
(6,672 |
) |
|
|
(217,671 |
) |
Lease liability |
|
|
(47,359 |
) |
|
|
(50,322 |
) |
Accounts payable |
|
|
(166,887 |
) |
|
|
431,467 |
|
Accrued liabilities |
|
|
(210,843 |
) |
|
|
74,501 |
|
Undeposited customer funds |
|
|
- |
|
|
|
(11,166 |
) |
Current liabilities |
|
|
161,647 |
|
|
|
- |
|
Warrant liability |
|
|
(79,891 |
) |
|
|
- |
|
Customer Deposits |
|
|
- |
|
|
|
996 |
|
Net cash used in operating activites for continuing operations |
|
|
(899,898 |
) |
|
|
(1,002,381 |
) |
Net cash used in operating activites for discontinued
operations |
|
|
(31,633 |
) |
|
|
- |
|
Net cash used in operating activities |
|
|
(931,531 |
) |
|
|
(1,000,771 |
) |
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities: |
|
|
|
|
|
|
|
|
Sale of fixed assets |
|
|
- |
|
|
|
23,000 |
|
Investment in capitalized software |
|
|
(87,072 |
) |
|
|
- |
|
Net cash used in investing activites for continuing operations |
|
|
(87,072 |
) |
|
|
23,000 |
|
Net cash used in investing activites for discontinued
operations |
|
|
420,269 |
|
|
|
- |
|
Net cash used in investing activities |
|
|
333,197 |
|
|
|
23,000 |
|
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities: |
|
|
|
|
|
|
|
|
Repayment of contigent liability |
|
|
(143,750 |
) |
|
|
- |
|
Dispostion of assets, related party |
|
|
- |
|
|
|
- |
|
Proceeds from sale of future revenue |
|
|
825,000 |
|
|
|
- |
|
Distributions to non-controlling interest |
|
|
- |
|
|
|
(275,000 |
) |
Proceeds from exercise of warrants |
|
|
7 |
|
|
|
875 |
|
Net cash provided by financing activites for continuing
operations |
|
|
681,257 |
|
|
|
(274,125 |
) |
Net cash used in financing activites for discontinued
operations |
|
|
- |
|
|
|
- |
|
Net cash provided by financing activities |
|
|
681,257 |
|
|
|
(274,125 |
) |
|
|
|
|
|
|
|
|
|
Net change in cash |
|
|
82,923 |
|
|
|
(1,251,896 |
) |
Cash at beginning of the
year |
|
|
1,111,156 |
|
|
|
3,122,578 |
|
Cash at end of the
period |
|
$ |
1,194,079 |
|
|
$ |
1,870,682 |
|
|
|
|
|
|
|
|
|
|
Supplemental
disclosure of cash flow information |
|
|
|
|
|
|
|
|
Cash paid for interest |
|
$ |
62,392 |
|
|
$ |
1,364 |
|
Cash paid for income
taxes |
|
$ |
- |
|
|
$ |
- |
|
Non-Cash
Transactions |
|
|
|
|
|
|
|
|
Insurance premium financed |
|
$ |
224,055 |
|
|
$ |
220,354 |
|
Note cancelled from SOSRx agreement termination |
|
$ |
500,000 |
|
|
$ |
- |
|
Note issued as SOSRx contribution |
|
$ |
- |
|
|
$ |
500,000 |
|
Intangible Asset Contribution from non-controlling interest |
|
$ |
- |
|
|
$ |
792,500 |
|
Dispostion of assets, related party |
|
$ |
492,030 |
|
|
$ |
- |
|
Reconciliation of Net Income (Loss)
attributable to TRxADE HEALTH, Inc., to Earnings
before Interest, Taxes, Depreciation and Amortization (EBITDA)
and Adjusted EBITDA*
|
|
Three Months ended March 31, |
|
|
|
2023 |
|
|
2022 |
|
Net loss attributable to
TRxADE Health, Inc. |
|
$ |
(677,953 |
) |
|
$ |
(965,836 |
) |
Add (deduct): |
|
|
|
|
|
|
|
|
Interest, net |
|
|
58,194 |
|
|
|
1,364 |
|
Depreciation and
amortization |
|
|
3,297 |
|
|
|
3,972 |
|
EBITDA * |
|
|
(616,462 |
) |
|
|
(960,500 |
) |
Add (deduct): |
|
|
|
|
|
|
|
|
Bad debt recovery |
|
|
32,074 |
|
|
|
- |
|
Change in fair value of
warrant liability |
|
|
(79,891 |
) |
|
|
- |
|
Litigation expenses |
|
|
- |
|
|
|
225,000 |
|
Stock-based compensation |
|
|
77,920 |
|
|
|
64,866 |
|
Adjusted EBITDA
* |
|
$ |
(586,359 |
) |
|
$ |
(670,634 |
) |
* EBITDA and Adjusted EBITDA are non-GAAP
financial measures. These measurements are not recognized in
accordance with GAAP and should not be viewed as an alternative to
GAAP measures of performance. See also “Use of Non-GAAP Financial
Information”, above.
TRxADE HEALTH (NASDAQ:MEDS)
과거 데이터 주식 차트
부터 4월(4) 2024 으로 5월(5) 2024
TRxADE HEALTH (NASDAQ:MEDS)
과거 데이터 주식 차트
부터 5월(5) 2023 으로 5월(5) 2024