TRxADE HEALTH(MEDS) - 2024 Q3 - Quarterly Report

Financial Performance - Revenues for the three months ended September 30, 2024, were $64,861, compared to$83,560 for the same period in 2023, representing a decrease of approximately 22.4%[6] - Gross profit for the nine months ended September 30, 2024, was $39,592, down from$162,990 in the same period of 2023, indicating a decline of about 75.8%[6] - The net loss from continuing operations for the three months ended September 30, 2024, was $(3,183,601), compared to$(88,136) for the same period in 2023, marking a significant increase in losses[6] - Basic net loss per common share from continuing operations was $(1.34) for the three months ended September 30, 2024, compared to$(0.11) for the same period in 2023[6] - The company reported a total net loss of $(3,183,601) for the three months ended September 30, 2024, compared to a net loss of$(3,525,114) for the same period in 2023[6] - The company reported a net loss from continuing operations of $11,441,764 for the nine months ended September 30, 2024, compared to a loss of$3,429,112 for the same period in 2023, indicating a significant increase in losses[8] - The company recorded a net income (loss) on discontinued operations of $27,670,294 for the nine months ended September 30, 2024, compared to a loss of$2,748,833 in the same period of 2023[40] Operating Expenses - Total operating expenses for the three months ended September 30, 2024, were $3,501,674, compared to$801,270 for the same period in 2023, reflecting an increase of approximately 337.5%[6] - Total operating expenses for the three months ended September 30, 2024, totaled $902,718, down from$4,279,019 in the same period of 2023, reflecting a 78.9% reduction[40] - Total operating expenses rose by $7,783,789 to$10,489,633, a 355% increase compared to the same period in 2023[85] Research and Development - Research and development expenses for the three months ended September 30, 2024, totaled $1,253,983, with no comparable expenses reported in the same period of 2023[6] - Research and development expenses were$1,253,983, reflecting costs associated with the Scienture merger[85] Cash and Assets - The company reported cash at the end of the period of $579,103 as of September 30, 2024, compared to$34,031 at the end of the previous period[8] - The company has a cash balance of $151,546 as of the latest reporting period[37] - Current assets (excluding cash) rose to$6,676,813 as of September 30, 2024, from $2,752,749 at the end of 2023, representing an increase of 143$2,083,743[37] Equity and Shares - The weighted average common shares outstanding for the three months ended September 30, 2024, were 2,373,848, compared to 771,192 for the same period in 2023, reflecting an increase in share count[6] - The company issued 15,759 shares pursuant to a merger agreement, contributing to an increase in common stock issued for services[7] - The Company authorized the issuance of up to 9,211,246 shares of Series X Preferred Stock, which were converted into 6,826,753 shares of common stock on September 20, 2024[53] Acquisitions and Mergers - The company completed the acquisition of Superlatus on July 31, 2023, with a total value of $225,000,169, which included 136,441 shares of common stock and 306,855 shares of Series B Preferred Stock[10] - The company entered into a merger agreement with Scienture on July 25, 2024, resulting in the issuance of 291,536 shares of common stock and 6,826,753 shares of Series X Non-Voting Convertible Preferred Stock[11] - The Company acquired Scienture, Inc. for a total purchase consideration of$78,646,184, which included 291,536 shares of common stock and 6,826,753 shares of Series X Preferred Stock[27][28] Dividends - Cash dividends paid amounted to $(12,671,072) for the period, equating to$8 per share[7] - The Company declared a special cash dividend of $8.00 per share on March 6, 2024, totaling$12,671,072, and a subsequent dividend of $1.50 per share on July 9, 2024, totaling$2,187,759[79] Debt and Financing - The Company entered into a Loan and Security Agreement for $2,000,000 with NVK Finance, LLC, with an interest rate of 15.50$360,000 was issued in August 2024, with net proceeds of $314,000 and an interest rate of 12$4,400,000, which is payable upon demand after October 31, 2023[49] Legal and Settlements - The company has a legal settlement with Studebaker Defense Group, LLC for $550,000, with payments scheduled to commence in May 2023, but no payments have been received as of the filing date[63] - Scienture has a termination fee liability of$1,285,000 related to an agreement with Kesin Pharma Corporation, which remains outstanding as of September 30, 2024[65] Inventory and Receivables - As of September 30, 2024, finished goods inventory increased to $7,884,000 from$968,000 as of December 31, 2023, indicating significant growth in inventory levels[43] - As of September 30, 2024, the company has receivables of $3,302,115 from Wellgistics and$1,203,682 from APS and CSP[41] Future Outlook - The company plans to raise additional capital or secure debt funding to support ongoing operations and potential acquisitions[26] - The company anticipates future capital resources will primarily consist of cash generated from operations and additional funds raised through sales of debt and/or equity securities[76]